All registered financial advisers (RFAs and AFAs) plus Qualifying Financial Entities (QFEs) must belong to a Dispute Resolution Service (DRS). These organisations are defining a complaint at a pretty basic level - see the table below.
|
Dispute Resolution Scheme |
Definition of a complaint |
|
Insurance & Savings Ombudsman (ISO) |
A complaint is an expression of dissatisfaction made to an organisation, related to its product [services], or the complaint handling process itself, where a response or resolution is explicitly or implicitly expected. |
|
Financial Dispute Resolution (FDR) |
A complaint is any indication that a service or product does not meet a client’s expectation. |
|
Financial Services Complaints Limited (FSCL) |
A complaint means an expression of dissatisfaction made to a participant related to its products or services where a response or a resolution is explicitly or implicitly expected. |
This table shows that a complaint is a ‘complaint’ even before it gets to be in writing. At its most basic, it is an expression of dissatisfaction or an indication that a product does not meet the client’s expectation.
Advisers and staff need to be aware of the definition of a complaint and once complaint is identified, it should be recorded and resolved at the lowest level possible. In the majority of cases, resolution will be done immediately by the adviser talking through the issue with the client and explaining where the potential misunderstanding may have occurred.
The recording of a low level complaint may seem excessive but it does enable the owner or manager to build up statistics helping to identify the areas where clients are most likely to complain. This will enable the owner or manager to implement improved systems that may include actions such as:
- Altering the consultation/interview process to better explain key points.
- Expanding the SoA or rewording existing sections of the SoA to make certain points clearer to the client.
- Developing special handouts that can be given to clients to better explain concepts. These handouts can be designed so the client can pass them onto friends - thereby making them a marketing tool.
- Altering client signoff documents so they better highlight risks, responsibilities, scope of advice, timeframes, costs, volatility etc.
- Developing tip sheets that can be posted on the adviser website or included in adviser newsletters, ezines or client seminars.
The benefits of taking action on all complaints are:
- Clients regard the adviser as being professional so there is a greater chance of referrals.
- It helps engender improved trust so adviser is more likely to be able to cross sell and up sell.
- Future complaints are minimised as improved systems help better explain potential issues, thereby avoiding them happening in the first place.
- Less rework or downtime for the adviser so more time available to generate new business and increase revenue.
- Happier clients as they are dealing with an adviser where the process is smooth, there are no surprises and everything is explained professionally to them.
The ultimate result is the ability to generate greater revenue which in turn can potentially increase the capital value of the business.
