AHK Response, part of legal firm Kennedys, was unveiled last week and will help advisers handle complaints from consumers by providing impartial advice and conducting independent investigations.
Founders Derek Humphrey and Alexei Abbott, who have more than 40 years’ experience in financial services between them, said there had been a gap in the market for this kind of service.
A thematic review conducted by the Financial Conduct Authority (FCA) last year pinpointed ways advisory firms could improve the way complaints are handled.
“Under-served”
With the number of complaints against IFAs rising in recent years, Humphrey said organisations have found it increasingly challenging to ensure that they can investigate these fairly and swiftly. He said firms are likely to continue to struggle to remain FCA-compliant when dealing with the growing number of complaints.
“The SME segment of the financial adviser community is under-served in terms of practical and affordable solutions, with the regulatory burden often more acutely felt by smaller, owner-managed firms”, he said. “Many in-house teams simply do not have the resource to investigate the rising number of complaints in a timely fashion.
Advisory firms of all sizes can subscribe to the service and will have a range of outsourcing options.
“Axe to grind”
“We don’t have an axe to grind against the advisers or the customers,” said Humphrey. “We know that the average IFA may not have the skills to look at the complaints impartially and make it clear to the customer that they are being treated fairly.
“We want to go in and assist the IFA and help the end consumer. Even if advisers get it right and follow all the rules, they don’t know if the customer will accept what was said, so we want firms to realise that there is help out there.”
AHK is hoping for feedback from financial advisers to see if the service meets their needs.
“Minimise the risks”
Professional indemnity partner at Kennedys, Sarah Cornish, said: “AHK’s offering aligns well to our insurer client base.
“The complaints handling service helps minimise the risks IFAs face and assists them with meeting increased regulatory demands. This in turn, will help improve the claims experience for their insurers.”
