Oxford Risk analysed the Financial Ombudsman Service's latest complaints data
Close to two thirds (61%) of complaints to the Financial Ombudsman Service about advisers are related to advice suitability, according to a new study.
Of the 1,459 complaints about financial advisers in 2023/24, 892 (61%) were related to the issue of mis-selling and suitability of advice.
This compares to 48% in 2022/23 when 884 of 1,823 complaints related to mis-selling and suitability of advice, according to analysis from consultants Oxford Risk.
The percentage of 'suitability of advice' complaints upheld in 2023/24 was 57%, slightly down on the 62% upheld in the previous year but ahead of the 49% upheld in 2021/22.
Other issues that dominated FOS complaints about advisers were administration and customer services, charges, fees and commission.
|
|
2023/24
|
2022/23
|
2021/22
|
|
Type of complaint
|
Number resolved
|
%
upheld
|
Number resolved
|
%
upheld
|
Number resolved
|
% upheld
|
|
Mis-sale – suitability of advice
|
892
|
57%
|
884
|
62%
|
570
|
49%
|
|
Administration or customer service
|
418
|
32%
|
503
|
30%
|
687
|
29%
|
|
Charges, fees and commission
|
89
|
41%
|
101
|
37%
|
133
|
23%
|
Source: Oxford Risk, 18 June 2025
When it comes to the most complained about adviser products, grievances remained dominated by DB transfers.
Defined benefit pension transfers not into SIPPs were the most complained about product in 2023/24, accounting for 368 complaints, ahead of 241 relating to UCIS and non-standard investments.
Other product areas in the top five included standard investments (169), personal pensions (155) and stocks and shares ISAs (123).
In 2022/23 defined benefit pension transfers not into SIPPs at 399 were the most complained about, followed by personal pensions (337), stocks and shares ISAs (318) UCIS and non-standard investments (311) and standard investments (269).
The FOS also continued to look at a significant number of historic complaints. The ombudsman resolved 205 complaints related to advice and events from more than 15 years ago in 2023/24. Almost half (45%) were upheld.
James Pereira-Stubbs, chief client officer at Oxford Risk said: “Suitability of advice is clearly a major issue in the FOS figures and one that the financial adviser industry needs to address particularly given current volatility.
“It is important to bear in mind that complaints to the FOS about financial advisers make up a very small proportion of total complaints, and advisers deserve tools that make good practice and regulatory compliance easier with a tighter focus on client investment suitability.”
The full set of FOS complaints data is available on its website.
