Surge in complaints against advisers

Susan Taylor, FSCL

Of the 1,469 complaints made, 366 cases were formally investigated and complaints about financial advisers made up the biggest number at 23%, followed by issues with lenders at 20%, and insurers at 17%.

The number of complaints has increased rapidly over the past two years in the wake of Covid, risen 4% in the past year and doubled in the past five years, to remain at historically high levels, Susan Taylor, the Financial Ombudsman says.

"We’re not yet seeing signs of complaints reducing. It reflects ongoing financial pressure on households and small businesses.”
She says what’s changed is the spread. Complaints are now more evenly distributed across a broader range of financial services, rather than being concentrated in just a few areas like non-bank lenders.

Lenders accounted for the largest share of complaints at 38%, but many of these were resolved before escalating to a dispute needing formal investigation.