About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   depositrates.co.nz  |   landlords.co.nz
Last Article Uploaded: Tuesday, May 30th, 8:43PM
Check out GoodReturns TV now! Dismiss
rss
Latest Headlines

KiwiSaver advice sparks complaints

Thirteen customers have complained about bank KiwiSaver sales and advice processes over the past year, the Banking Ombudsman says.

Thursday, October 20th 2016, 6:00AM 1 Comment

by Susan Edmunds

Nicola Sladden

The dispute resolution scheme has released its annual report, which shows it received 2458 inquiries in the year, up 2.6 per cent on the year before. Those inquiries led to 568 complaints, down 1.4 per cent. From there, 259 disputes were received, down 4.1 per cent.

A dispute is triggered when a complaint referred on by the Banking Ombudsman cannot be resolved by the banks.

Service-related issues were the biggest underlying cause of inquiries, complaints and disputes. This included things such as the failure of bank staff to act as instructed and concerns about debt collection.

Break fees on mortgages were also a cause of complaints, as were declined insurance claims.

Ombudsman Nicola Sladden said there were a number of complaints related to decisions about allowing early withdrawals from KiwiSaver.

But other bank customers complained about the quality of information that was provided when they switched funds or providers.

“We had 13 cases last year and some related to transfer of pension from Australia, and others being signed up to KiwiSaver without full knowledge or understanding the implications.”

She said the Financial Markets Authority’s guidance should help.

The FMA has indicated that it is aware that some banks are struggling with how to offer more than printed information on KiwiSaver within the constraints of the Financial Advisers Act, and will offer them more assistance to help them comply.

Banks told Good Returns it was sometimes hard to offer personalized advice within the confines of a QFE structure.

“All financial service providers are committed to improving the quality, simplicity and clarity of the information provided to customers and that’s something we would certainly support,” Sladden said.

She said the 13 complaints was not a noticeable increase from earlier years.

Tags: banks KiwiSaver

« Banks tackle KiwiSaver advice questionKiwiSaver risk reward just 2.1% »

Special Offers

Comments from our readers

On 20 October 2016 at 2:51 pm R1 said:
"Banks told Good Returns it was sometimes hard to offer personalized advice within the confines of a QFE structure."

So let's scrap QFE focus on selling and have AFA's only providing advice to clients and applying the same standard of 'putting the clients' interests first as all AFAs.

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
  • Massey resumes work on advice degree
    “Groan – it must be that time of the year again when I find myself compelled to respond to Brent’s myopic perspective...”
    6 hours ago by Pragmatic
  • InvestNow mix-up disappointing: Stubbs
    “"Invest Now listed our products without our knowledge"... What / who else have InvestNow done without prior consent or...”
    6 hours ago by Pragmatic
  • Massey resumes work on advice degree
    “Have to agree with Brent. It would be very damaging for Massey to have content influenced by the biases of the industry....”
    8 hours ago by R1
  • Massey resumes work on advice degree
    “I would venture to suggest that it always starts with the fundamentals, not portfolio or strategies of pension funds. These...”
    11 hours ago by smitty
  • Massey resumes work on advice degree
    “The worry here is that “the contents and structure meets the market’s requirements”. As we see all the time with CPD...”
    13 hours ago by Brent Sheather
Subscribe Now

News and information about KiwiSaver

Previous News
Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
ANZ 5.79 4.99 5.35 5.59
ANZ Special - 4.49 4.85 -
ASB Bank 5.80 4.85 5.14 5.49
ASB Bank Special - 4.45 4.74 5.09
BankDirect 5.80 4.85 5.14 5.49
BankDirect Special - 4.45 4.74 5.09
BNZ - Mortgage One 6.50 - - -
BNZ - Rapid Repay 5.95 - - -
BNZ - Special - 4.59 4.79 5.09
BNZ - Std, FlyBuys 5.90 4.99 5.19 5.49
BNZ - TotalMoney 5.90 - - -
Lender Flt 1yr 2yr 3yr
Credit Union Auckland 6.70 - - -
Credit Union Baywide 5.95 ▲5.45 ▲5.50 -
Credit Union North 6.45 - - -
Credit Union South 6.45 - - -
Finance Direct - - - -
First Credit Union 5.85 - - -
Heartland 6.70 7.00 7.25 7.85
Heartland Bank - Online - - - -
Heretaunga Building Society 5.75 5.00 5.20 -
Housing NZ Corp 5.79 ▼4.85 5.14 5.49
HSBC Premier 5.79 4.09 4.29 4.89
Lender Flt 1yr 2yr 3yr
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 5.70 4.59 4.69 5.09
Kiwibank 5.70 5.09 5.19 5.65
Kiwibank - Capped - - - -
Kiwibank - Offset 5.70 - - -
Kiwibank Special - 4.69 4.79 5.25
Liberty 5.69 - - -
Napier Building Society - - - -
Nelson Building Society 6.10 5.10 5.45 -
Resimac 5.00 4.86 4.75 5.30
Lender Flt 1yr 2yr 3yr
SBS Bank 5.79 4.99 ▲5.29 ▲5.59
SBS Bank Special - 4.59 ▲4.85 5.25
Sovereign 5.90 4.85 5.14 5.49
Sovereign Special - 4.45 4.74 5.09
The Co-operative Bank - Owner Occ 5.75 4.59 4.85 5.25
The Co-operative Bank - Standard 5.75 5.09 5.35 5.75
TSB Bank 5.65 4.80 5.15 5.45
TSB Special - 4.55 4.75 5.15
Wairarapa Building Society 5.70 4.85 4.99 -
Westpac 5.84 4.99 5.29 5.59
Westpac - Capped rates - 5.15 5.25 -
Lender Flt 1yr 2yr 3yr
Westpac - Offset 5.84 - - -
Westpac Special - 4.59 4.85 5.09
Median 5.80 4.85 5.14 5.38

Last updated: 30 May 2017 5:37pm

News Quiz

The maximum remuneration model for Australian life insurance advisers is to be set at what?

Upfront 40% + trail 20%

Upfront 50% + trail 10%

Upfront 50% + trail 20%

Upfront 60% + trail 10%

Upfront 60% + trail 20%

MORE QUIZZES »

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by Web Developer and eyelovedesign.com