Provider service is unacceptable

Provider service has gone from bad to worse, and it’s costing advisers a fortune. So; here is an idea. Establish compulsory provider service standards. They could be developed in conjunction with the ABI, FOS and maybe PFS or some other body. And let’s fine institutions for every failure to meet those standards; irrespective of whether it is the consumer or the adviser that has been inconvenienced.  For example: ‘An email with all necessary details requesting a valuation – 48 hours.’ Of course, the fine needs to be meaningful for missing that standard. £100? £200? The total value of fines paid by providers should be publicised in the same way as upheld complaints are for advisers. Maybe a useful metric when making provider selection decisions? And perhaps, companies that fail to reduce the number or value of fines should be subject to a regime where their fine scale is increased.

I am sure this proposal will not go down well with providers and no doubt many reasons will be given why it is not practical. Initially, FOS and ABI may also be unwilling to get involved. But, anecdotal evidence suggests that second rate service is costing advisers time and money and, maybe, losing them existing or potential clients. It’s important! How many provider CEOs actually know how terrible their service is. How many of the executive team know? And what about the Board? My guess is very little.

If an IFA calls an account manager to complain about something that should have been delivered but wasn’t: Where is the metric? If an adviser picks up the phone to call head office and then decides they just can’t be arsed to listen to music for half an hour. Where is the metric? And if good people leave the organisation because they are fed up with apologising for something that isn’t their fault: Where is the metric?

I’ve been involved in retail financial services for a long time and one of the first things I was told was: “You can’t manage it if you can’t measure it.” And fines might, at the very least, measure it.