In this guide
If you have a problem with your financial adviser or investment product, it can feel both disappointing and a little daunting trying to work out what to do.
The important thing to remember is you have a right to complain and ask for your problem to be investigated and – hopefully – rectified.
Whether it’s a concern about poor advice, incorrect fees or questions about how your private data has been handled, there are organisations that can assist with free dispute resolution services.
If you want to get things sorted, however, you need to follow the correct dispute process and ensure you have records to support your argument so it can be properly assessed by the independent referee.
Good to know
There are always complaints about investment products and financial advisers, but it’s good to know standards have been improving and they are not the most complained about financial service.
According to Australian Financial Complaints Authority (AFCA) data for 2021–22, the top five product line complaints received related to credit products (37% of all complaints), general insurance (26%), deposit taking (15%), superannuation (7%) and payment systems (7%).
Over the same period, there were 2,078 complaints received about investments and advice, which represented only 4% of all complaints AFCA received. Of these, only 506 complaints were about financial advisers/planners.
The top five issues relating to investments and advice were interpretation of product terms and conditions (654 complaints), service quality (570), failure to follow instructions/agreement (332), failure to act in the client’s best interests (281) and inappropriate advice (241).
The number of complaints related to failure to act in the client’s best interest and inappropriate advice were well down compared to the previous financial year.
According to AFCA, the number of complaints about investments and advice has continued to trend downwards over the past few years and the trend is particularly evident in the financial advice area.
Complaining the right way
If you’re upset with your financial adviser about some aspect of the advice or service you’ve received, talking to them about it is usually the last thing you want to do. However, telling them you’re unhappy is generally your best move, as they may be able to solve the problem immediately.
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