The number of new disputes across the financial services sector rose 22.8 per cent in the year to June 30, 2008, a review by the Financial Ombudsman Service (FOS) has found.
During the last financial year, the banking and finance division recorded a 22.7 per cent increase in new cases, while in the six months to June 30, 2008, the investments, life insurance and superannuation division experienced an increase of 33 per cent in new cases.
There was little doubt that this year's global financial turmoil has had a significant impact on the number of disputes being brought forward, FOS chief ombudsman Colin Neave said.
"There has been a considerable increase of 152 per cent in disputes about managed investments and a 55 per cent rise in financial planning disputes, involving allegations of inappropriate advice and standard of service," Neave said.
"It is essential that financial services providers continue to invest in staff and systems to deal with complaints because, in the short-term, the trend of increasing numbers of disputes will continue," Neave said.
FOS investments, life insurance and superannuation ombudsman Alison Maynard said the rise in disputes could be an indication that internal complaints divisions were under pressure.
"Despite the significant increase in disputes, and considering the current economic environment, the amount of disputes is still relatively small," Maynard said.
FOS, which launched in July this year, combines the old Insurance Ombudsman Service, the Financial Industry Complaints Service, and the Banking and Financial Services Ombudsman.
