Making Decisions On Complaints Procedure

Making Decisions On Complaints Procedure

EUFA members met with the Fair Trading division of the Commerce Commission on Tuesday to discuss effective and efficient ways to lay complaints in relation to Financial Advisors and their governing companies.  The Commerce Commission was most receptive and co-operative, giving some hope to EUFA members about progressing outstanding, current and new complaints.

At the meeting, founding member of EUFA, Jim McSoriley of Wellington, explained his experiences in dealing with his Financial Advisor.

While the meeting was of an informal nature the Commission were very receptive and invited EUFA and Mr McSoriley to make a formal complaint. The submission will be prepared over the holiday period in time for the investigation teams return to work. 

The complaint will consist of the details of the McSorileys case, but will encompass a submission demonstrating how the Insurance industry is failing to protect their clients.  It will demonstrate the informal yet binding status of the Insurance and Savings Ombudsman terms of reference.

Mr McSorileys case will be an example case, in support of others who have fallen victim to a product salesman, when believing they were receiving professional financial advice from their trusted Financial Advisor.

Suzanne Edmonds Coordinator of EUFA said this morning from Auckland " Financial Salesman posing as Financial Advisors are our target, not Financial Advisors/Planners who give sound and professional Financial Advice.” She also went on to say,  "It is time Insurance companies who contract to Financial Advisors took responsibility for the current manner in which they are conducting business – a shake up is needed.”

Jim McSoriley said from Wellington today,  "Insurance Companies drag out and manipulate complaints to make the statute of limitation run out. In our case our rights have been eroded, as we have had no effective remedy to challenge a company who has devastated our lives. He also said,  "We only have the government and our freedom of speech to help us now".

Investors in recent finance collapses who used the service of financial advisor, often did not understand the rigorous process a true financial advisor would follow.  Often Financial Advisors only sell products for the company they are contracted too making a diverse investment impossible.

Jim McSoriley added  “People need to know what they are up against when the salesman is posing as an Professional Financial Advisor.

In the new year EUFA members will be invited to be involved in a documentary to be screened later next year, that will hopefully expose the differences between product sales and Financial Advice, the loop holes in the system, the devastation and the failure of the Companies to take responsibility. 

ENDS

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