Are you confident your file notes would protect you if your advice was ever disputed by a client?
- Yes (73%)
- Not sure (21%)
- No (6%)
Loading ...While disputes about financial advisers have reduced in the first six months of this financial year, financial ombudsman FSCL has reported a spike in financial disputes in general, prompting us to ask how confident advisers are that your file notes would protect you if your advice was ever disputed by a client?
Financial Services Complaints Ltd found a 41% increase in disputes in general with 235 disputes opened between July and December. Amongst that number 26 disputes were about financial advisers (an improvement from the 40 a year earlier). However the 31 complaints about insurers compared with 23 in the previous period (see: Ombudsman Service Sees Major Increase in Financial Disputes).
Similarly, the Insurance & Financial Services Ombudsman Scheme reported that nearly 30% of its record number of 600 disputes accepted for investigation in the year to 30 June 2025 were about health, life, or disability insurance. The 600 disputes it investigated was up 25% over the previous year (see: Insurance Disputes Hit Another Record High).
…only a small majority of advisers seemed confident their files notes would protect them…
When we broached this issue in March 2025, after another financial complaints story, only a small majority of advisers seemed confident their files notes would protect them if their advice was ever disputed and a sizable number were not so sure.
At that time just over half (55%) of advisers said their file notes were good enough to protect them but a notable 38% were not sure their file notes would be up to scratch. Another 7% stated a bald “no” (see: Advice Disputes: Your Verdict).
So have your practice processes improved since March 2025? Is the ongoing publicity being given to the rising numbers of consumer complaints leading you to rethink how you record and monitor your client engagement?
We are interested to know your thoughts and will report back next week…
