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Retail investors accounted for 60% of all information requests filed in 2007, in contrast with 50% the previous year, according to the Bolsa de Madrid Ombudsman Report 2007. "The Ombudsman is the most suitable channel through which retail investors can obtain clear and timely answers to their queries", said Carlos Fernández, Bolsa de Madrid Ombudsman during the presentation of the Report, today.
The other significant group of information requests came from stock exchange members and financial firms, which together accounted for 20% of all queries filed in 2007. This is proof of the trust this segment has placed with the Ombudsman for a simple and efficient resolution of their information requests. A breakdown by type of information requested shows that 63% of all queries in 2007 were concerned with stock exchange data and 29% with companies' relevant facts.
In 2007 the Ombudsman has maintained the policy followed in previous years of avoiding, when reasonable, the recourse to complaints in writing. This has resulted in the resolution of 31 complaints, in contrast with 36 the previous year. This downward trend bears out the preventive side of the work carried out by the Ombudsman, which contributes to a greater financial education of retail investors.
It is worth mentioning the increase in the complaints concerned with warrants trades. In this respect the Ombudsman warns in its 2007 Report of the risks associated with this product, that retail investors should be familiar with. Carlos Fernández stressed during his presentation that "retail investors should avoid those products if they don't understand completely their mechanisms".
As to complaints filed with the Ombudsman but outside its remit, they increased from 28% in 2006 to 35% in 2007. The number of files that were resolved through common agreement between the parties involved increased in 2007. This was due to the publication of Final Reports by the Ombudsman, which contained the basis for their resolution.
In 2007 the so called "contentious queries" decreased significantly to 23% of all complaints from 50% the previous year. When making this type of query investors demand information on actions carried out by intermediaries, which are usually resolved through simple explanations and the interpretation of the stock market's functioning.
Also important is the improved proportion between favourable and unfavourable reports regarding investor's complaints as well as the positive attitude of claimants and financial firms towards them.
For more information: http://www.bolsasymercados.es/
