FINANCIAL SERVICE COMPANIES NOT FACING CHALLENGES - Some financial institutions do not seem to understand the need to engage with their customers' grievances. The latest six monthly review of complaints about the Financial Services Ombudsman reveals an increase in the number of aggrieved customers and also an increase in the number of complaints upheld by the Ombudsman. In his latest six monthly review covering the first half of the year, the Financial Services Ombudsman says the number of complaints he upholds against some companies is far in excess of their industry peers. In the last six months there has been big percentage increases in complaints about mortgage protection and health insurance.
Financial Services Ombudsman Bill Prasifka says the trends he is seeing are not good, with the percentage of complaints against financial services providers increasing all the time. He says this shows that the industry is not coming to grips with the challenges of the financial crisis. Mr Prasifka says that some financial service providers are mis-selling products while there are also cases of mal-administration but a lot of the increase in complaints come from consumers in financial distress. Repeating his call for a name and shame policy, the Ombudsman says this is the only way to make companies internalise his office's findings and deal with customers' complaints and concerns. He says the overall goal of his office is to the move the industry forward to a new level of customer service.
There is also an increase in the number of complaints against health insurance companies as more consumers switch provider. Mr Prasifka says these companies should better inform customers at the point of sale about the conditions and terms of switching.
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MORNING BRIEFS - There is a sense of improved sentiment across global markets today with investors buoyed by indications that a plan is emerging to shore up Europe's banks in the event of the euro zone sovereign debt default the markets are so convinced is coming to Athens. Asian markets are up; the euro has gained and the price of oil is also higher.
*** The president of the European Commission, Jose Manuel Barroso, yesterday struck a populist note saying banks straying into unsure territory on their capital strength should not pay dividends and should not pay bonuses. The Financial Times this morning leads with an article that says big European banks would rather sell assets than try to raise fresh cash from shareholders at a time when they feel their share prices are depressed.
*** Slovakia, the only euro zone country yet to ratify the European Financial Stability Fund, said it would have the job done by Friday despite voting it down on Tuesday.
*** The number of high net worth individuals in the Asia-Pacific region outnumber the number of high net worth people in Europe for the first time. The number of rich people grew almost 10% in 2010 to 3.3 million people. That figure was contained in the Merrill Lynch/ Cap Gemini Asia-Pacific Wealth Report.
*** On the currency markets, the euro is worth $1.3793 and 87.65 pence sterling.
