Investment complaints are declining – have financial advice improved or are investors more satisfied?

Last year’s strong bull market saw a significant decline in the number of investors complaining about the suitability of their holdings.

The Ombudsman for Banking Services and Investment 2024 Annual Report shows a 38-year percent decline in suitability-related complaints compared to the previous year. Conformance is a core principle for investing in advice. That speaks to how common clients are with portfolio securities. Does the advisor nail it?

Over the years I have significantly improved the quality of my investment advice. Feedish sales are low, with a focus on crowd-pleasing investments and diverse, low-cost portfolio building blocks. However, the sudden decline in suitability complaints speaks far more about the stock market situation than the quality of advice. In the eyes of many investors, securities that increase in prices are automatically suited.

We’re already seeing this sheen reversal of compatibility. Stock markets are choppy as a result of trade war uncertainty, with investors experiencing sharp declines in some sectors and stocks.

Recent portfolio losses do not necessarily indicate inappropriate investments. Even a well-diversified portfolio have lost ground recently. Fitness becomes an issue when you own something with more risk than you are ready to accept. Advisors are supposed to have a deep discussion of appropriateness when opening an account with clients. Sometimes clients say they are offensive investors and then learn through bitter experiences that they are not. And sometimes, advisors can put clients in overly dangerous investments, and in returns, or because fees and fees can be high.

Now is the ideal time to assess the suitability of your holdings. Many investors will do this. This may be recorded in the 2025 OBSI Annual Report.

With regard to the 2024 annual report, conformity was tied to service issues as the biggest source of investment complaints. Both issues generated 110 cases, with fraud occurring at 93 and fee disclosure generated 74.

Obsi opened 649 investment complaints last year, down 2% from 2023. Obsi can investigate complaints against banks and investment companies and recommend compensation. Last year the average pay was $12,235.