The Financial Services Complaints Limited (FSCL), one of New Zealand’s independent financial ombudsman services, has released annual statistics showing that complaints about financial services have remained at elevated levels.
For the year ending June 30, 2025, FSCL received 1,469 complaints, a slight increase from 1,426 in the previous year. This figure is twice the number of complaints recorded five years ago, indicating persistent pressures in the financial sector.
Susan Taylor, Financial Ombudsman at FSCL, noted that while the volume of complaints has not decreased since the surge following the COVID-19 pandemic, the distribution of complaints has shifted.
“What’s changed is the spread. Complaints are now more evenly distributed across a broader range of financial services rather than being concentrated in just a few areas like non-bank lenders,” she said.
Lending institutions accounted for 38% of all complaints received, although many of these were resolved before requiring a formal investigation.
The total number of disputes that advanced to formal investigation increased by 4% compared to the previous year.
Of the 366 cases investigated, the largest share involved financial advisers – including mortgage and insurance brokers and wealth advisers – at 23%. Lenders followed at 20%, and insurers made up 17% of the cases.
A notable trend in the latest data is the growing number of complaints from small business owners, particularly regarding lending and insurance products.
Taylor said this development likely reflects the challenging business environment.
“This likely reflects the tough trading environment many small business owners are facing,” she said. “They’re under pressure – and we’re seeing that come through in the disputes they bring to us.”
FSCL has passed its most recent five-year independent review, which found the scheme compliant with its obligations under the Financial Service Providers (Registration and Dispute Resolution) Act 2008.
The review, conducted by Nanette Moreau Hammond, confirmed that FSCL meets standards for fairness, independence, accessibility, effectiveness, accountability, and efficiency.
Feedback from stakeholders, including both consumers and financial service providers, described the FSCL as timely and accessible in its approach to complaint resolution.
Despite the positive assessment, the review identified limited public awareness of FSCL’s services as a continuing challenge.
According to the report, a significant portion of consumers remain unaware of their right to access external dispute resolution.
Taylor acknowledged this gap and said the board is implementing recommendations to address it.
“The board has accepted all the recommendations, and we are already implementing them,” she said. “One of the challenges highlighted is that 20% of financial services consumers are unaware of any dispute resolution options available to them. We are actively working on increasing consumer awareness of our service and reaching more consumers, so they know help is available when they have a problem with their financial service provider.”
