The FOS Annual Review for 2014 Financial Year shows the total number of disputes received remains relatively steady with FOS receiving 31,680 disputes, a decrease of 2% on the 2013 Financial Year. The number of disputes accepted declined by 3% to 23,454 disputes.
Superannuation fund disputes increased from 285 (2013 Financial Year) to 296 (2014 Financial Year). However dispute numbers were still lower than the 2011 Financial Year (379) and 2012 Financial Year (313).
Most superannuation disputes were about self-managed funds (35%) and retail funds (33%). People who lodged disputes about self-managed funds were most likely to complain about inappropriate advice (31%). Common issues in disputes about retail funds were inappropriate advice (16%) and failure to follow instructions/agreement (14%).
The most commonly accepted superannuation disputes by sales and service channel were adviser/planner 55% and superannuation fund trustee/adviser 18% disputes.
There were 458 non-income stream risk disputes during the 2014 Financial Year, up 7% on the previous year. Half the disputes about non-income stream risk products related to a decision made by the financial services provider.
The product at the centre of most superannuation related disputes was total and permanent disability insurance (29%). Denial of claim was the most common reason people lodged disputes about this product, followed by delay in claim handling.