Transcript FOS proofing your Business (insights from the inside)

FOS proofing your Business
(insights from the inside)
May 2011
Claire Mackay
IMPORTANT
• This is NOT a presentation by the Financial
Ombudsman Service (FOS)
• The presentation are personal views of the
presenter and DO NOT represent the views of
FOS
• This presentation is SOLELY for the members of
ICAA Financial Planning Special Interest Group
who are all experts in financial planning and not
consumers or members of the media
A bit about me
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BCom(Accg) LLB LLM Adv Dip FS (FP)
CA (FP specialist)
CFP member of FPA
Admitted to NSW Supreme Court, NSW Law Society
Tax Institute of Australia
• Ex PwC & Macquarie structured products
• Quantum Financial Services Australia Pty Ltd – family
financial planning firm based in Chatswood founded
in 1994
A bit about FOS
Consumer complains to FOS & FOS provides Advisor
/ Licensee with opportunity to resolve
No resolution leads to detailed info gathering &
sharing & reply – possible to settle or have
conciliation meeting
FOS staff (mostly lawyers) examine matter & provide
initial finding
Consumer OR Advisor / Licensee can object decision
and refer to FOS Panel
FOS Panel – chair, industry rep, consumer rep decide
– decision binding (complex cases always go to
panel)
Things we have reviewed in our business
• Complete review of templates and internal processes
• Filenotes of meetings now emailed to client for their
records
• All client instructions in writing (verbal followed by
email)
• Ensuring at review meetings we explain any difference
between SOA recommendations and actual
• Formalising regular informal client communication
• Formal regular client communication about BIG events
that affect markets and consumer sentiment
• Recording of meetings and telephone discussions with
clients (still considering)
If you do have to go to FOS
• Refer to Licensee, PI provider & FOS website for
guidance – similar cases, professional assistance.
• Prepare thorough submission and get a professional
colleague not involved to review & provide
feedback
• Maintain professionalism in all correspondence
• Don’t take it personally & don’t get emotional
– Eg Doctors see getting sued at least once just part of
doing business
• Consider settling dispute (subject to PI) as there is a
real cost – time, money and emotionally
Key take-aways
1. Get the basics right:
– FSG, Fact Finder, Risk questionnaire, SOA, ROA, regular
review, research
– Document any differences between advice & actual
2. Review existing systems for potential weak areas &
change processes
3. Keep communicating with clients to resolve difficult
situations and avoid FOS
4. Recordings or contemporaneous emails confirming
conversations with clients are your best evidence
– When it is “he said / she said” you are the professional &
expected to have best practice approach
5. Don’t take it personally – it is just business