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.”

ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Media: Julian Wilcox Leaves Māori TV

Māori Television has confirmed the resignation of Head of News and Production Julian Wilcox. Mr Maxwell acknowledged Mr Wilcox’s significant contribution to Māori Television since joining the organisation in 2004. More>>

ALSO:

Genetics: New Heat Tolerant Cow Developed

Hamilton, New Zealand-based Dairy Solutionz Ltd has led an expert genetics team to develop a new dairy cow breed conditioned to thrive in lower elevation tropical climates and achieve high milk production under heat stress. More>>

Fractals: Thousands More Business Cards Needed To Build Giant Sponge

New Zealand is taking part in a global event this weekend to build a Menger Sponge using 15 million business cards but local organisers say they are thousands of business cards short. More>>

Scoop Business: NZ Net Migration Rises To Annual Record In September

New Zealand’s annual net migration rose to a record in September, beating government forecasts, as the inflow was spurred by student arrivals from India and Kiwis returning home from Australia. More>>

ALSO:

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Auckland Outage: Power Mostly Restored Overnight

Vector wishes to advise that all but 324 customers have been restored overnight. These customers are spread throughout the network in small pockets. The main St Johns feeder was restored around midnight allowing most of the customers in all affected areas to have power this morning. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news