Undisclosed fees, lack of disclosure regarding compensation and unsuitable recommendations are among the top client complaints reported to the Financial Planning Standards Council.
“Client complaints are the most common in these areas,” said Stephen Rotstein, vice-president, policy and enforcement and general counsel, with FPSC. He spoke at the Canadian Institute of Financial Planners 2012 annual conference held in Vancouver Tuesday.
Other common client complaints include unprofessional conduct, with an existing client or when prospecting, not getting client consent before making an investment decision, as well as not disclosing conflicts of interest.
In 2011, the FPSC investigated 100 cases, 27 of which were formal client complaints. It also issued cautionary warnings to CFPs in 10 of those cases.
It’s important that financial planners view the FPSC’s enforcement process as “neither friend nor foe”, said Rotstein. “We want to ensure CFPs are abiding to the highest standard.”