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

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news