Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Financial adviser complaints can be avoided

Financial adviser complaints can be avoided, says Insurance & Savings Ombudsman

Insurance & Savings Ombudsman Karen Stevens says good client communication and clear processes can help financial advisers prevent client dissatisfaction.

“We deal with over 3000 complaint enquiries each year and only a small number relate to financial advisers,” says Insurance & Savings Ombudsman Karen Stevens. “Mostly, we are contacted about insurance issues including house, motor vehicle, contents, life or health insurance.

“But the complaint enquiries we do receive about financial advisers tend to be about the quality of advice, miscommunication, misunderstandings, fees and charges.

“The good thing is many of these issues can be avoided if financial advisers have robust processes, check details, and communicate clearly and regularly with their clients,” says Karen.

“In one case, an adviser didn’t inform his client’s insurance company that his client hadn’t been smoking for 12 years. Therefore his life insurance premiums were higher than they should have been. The client mistakenly thought it was his adviser’s responsibility to inform his insurer of the change in his smoking. This highlights how important it is for advisers to describe their role and regularly communicate with clients. It also demonstrates how many clients do not understand what their obligations and responsibilities are.

“Another adviser filled out a health insurance application on behalf of her client, and omitted to declare details about their ongoing health issues. When the insurance claim was declined due to non-disclosure, the client said it was his adviser’s mistake.

“It’s wise for financial advisers to ensure their customers complete application forms, and to make sure their clients are fully aware of the duty of disclosure and the potential consequences of failing to disclose information.”

Complaints are valuable feedback for industry. “Rob Everett, Chief Executive of the FMA, recently described complaint data as ‘gold-dust’. We agree. We regularly share complaint information with our members through regular newsletters and training webinars,” says Karen.

“We base our training on real complaints and issues. We want to ensure lessons can be learnt from past mistakes, and business practices can be improved, so everyone benefits.”


© Scoop Media

Business Headlines | Sci-Tech Headlines


Land & Water Forum: Fourth Report On Water Management

The Land and Water Forum (LWF) today published its fourth report, outlining 60 new consensus recommendations for how New Zealand should improve its management of fresh water and calling on the Government to urgently adopt all of its recommendations from earlier reports. More>>



Welcome Home: Record High Migration Stokes 41-Year High Population Growth

New Zealand annual net migration hit a new high in October as more people arrived from than departed for Australia for the first time in more than 20 years. More>>


Citizens' Advice Bureau: Report Shows Desperate Housing Situation Throughout NZ

CAB's in-depth analysis of over 2000 client enquiries about emergency accommodation shows vulnerable families, pregnant women and children living in cars and garages, even after seeking assistance from the Ministry of Social Development and Housing New Zealand. More>>


Speaking For The Bees: Greens Call For Neonicotinoid Pesticide Ban

The National Government should ban the use of controversial pesticides called neonicotinoids after evidence has revealed that even at low doses they cause harm to bee populations, the Green Party said today. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news