Sesame most complained about advisory firm

Sesame received more complaints than any other advisory firm over the first half of 2014, the Financial Ombudsmen Service (FOS) has revealed in its half year results.

Sesame most complained about advisory firm

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The advisory network, which is part of the Friends Provident group, was also the most complained about advisory firm for the second half of last year.

It received 197 new complaints this year, with 69 coming from life and pensions and decumulation, and 20 arising from investments.

However, the figures, which showed an industry-wide increase in complaints, also revealed that the company received 8% less than the 213 made against it over the previous six months.

In response, the company said the complaints represent a “tiny proportion” of the 220,000 business transactions its members write each year.

“Sesame has also seen an improving trend, with a 33% reduction in FOS referrals year on year,” it said.

“This comes along with an uphold rate that remains low, with three quarters of the Sesame complaints referred to the FOS rejected,” it added, in reference to its 26% uphold rate.

“We are satisfied that the procedures we have in place ensure a consistent and fair approach to complaint handling and treating customers fairly.”

Sesame was followed by St James’ Place, who received just 77 complaints, 20% fewer than the 96 it received in the second half of 2013.

However, the company were subject to a higher overturn rate, with 42% of cases being resolved in favour of the consumer.

In its defence, the company similarly emphasised its 420,000-strong client base in relation to the relatively low number of issues.

“We are working hard to understand the circumstances behind the 32 upheld complaints to ensure we learn from each case,” it said. “We take clients issues very seriously and regret that any cases were referred to the FOS.”  

Openwork, part of Zurich, was the third highest advisory firm, with 73 complaints. However, just 21% of these were upheld in favour of the consumer.

Personal Touch followed with 55 new complaints, while Hargreaves Lansdown received 48. Just 17% of the latter’s cases were resolved in favour of the consumer, the lowest rate of any company on the list.

Interactive Investor were the only company to receive more issues in this interim than the last, with 43 complaints marking a 39% increase.

'Bank doesn't really care'

In total, the ombudsmen took on 191,129 new cases throughout the first half of 2014, 3% higher than the second half of last year. 70% of the complaints were related to payment protection insurance.

The period saw an average uphold rate of 57%, up from 51% in the previous six months.

Chief ombudsmen, Caroline Wayman, said the service has seen “more and more” people turn to it when they feel their bank or insurer “doesn’t understand or really care”.

“We’re hearing growing dissatisfaction from people about being processed industrially as a number, rather than being listened to as an individual customer,” she added. “By giving their customers more thoughtful, considerate and personal responses, we know that businesses can sort out problems earlier on.”