[Weekly Wrap] Drumming up complaints unnecessary

It's that time of the year where the external disputes resolution schemes are rolling out their annual reports complete with statistics on cases they have heard and seen. It seems each of these schemes is hell-bent on encouraging more people to complain about their financial adviser.

Tuesday, October 28th 2014, 10:53AM

It's that time of the year where the external disputes resolution schemes are rolling out their annual reports complete with statistics on cases they have heard and seen. It seems each of these schemes is hell-bent on encouraging more people to complain about their financial adviser.

There seems to me to be some conflict going on here. On one hand financial advisers are forced to join a scheme and therefore they have some stake in the business. On the other hand their scheme becomes totally focussed on trying to generate complaints from the public against their members. Yes I know schemes work hard helping their members avoid and resolve complaints, but it does seem odd that they then take a very public position trying to generate complaints.

I've always thought organisations in the financial services sector have been good at letting clients and prospective clients know what their options are around complaints.

This touting for business maybe pitched as educational, but it doesn't seem to do much to help investor confidence.

I've argued for years that by and large advisers who operate in the investment, insurance and mortgage sectors do a pretty good job and aren't out there trying to rip off clients. There are other areas where there are concerns including personal lending and payday loans.

I know my views here are shared by many advisers.

On another note I have been surprised that ever since the IFA and PAA announced they would hold a joint conference next year people have leaped to the conclusion the two associations were getting together. Whether a merger of some kind is a good idea is something I will leave to another day.

However, I do applaud the leadership of the two groups in getting together on a joint conference. It is a long-overdue idea and one which the supporting organisations will no doubt be thankful for.

While on association matters I would like to offer our thoughts to former IFA president Nigel Tate who is in Shanghai at the Financial Standards Board meeting with president Michael Dowling. Tate has had a heart attack and had surgery. All reports are that is recovering well and will be allowed to fly home early next week.

We wish him our best wishes for his recovery.

This week we have the next official cash rate announcement on Thursday. The mortgagerates.co.nz survey of economists suggests there is no chance the OCR will increase. What is interesting though is that forecasts for the next increase have been pushed out and also economists are now thinking the OCR will peak around the four to 4.5% mark in this cycle. These predictions are lower than what had earlier been forecast.

Also this week we have the Grosvenor conference in Wellington.

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