Chapter 10 Consumer protection and dispute resolution

Question 1

What is a data controller?

Answer 1

The party who keeps personal data on their customers and determines how and why it is processed

Question 2

What is a data processor?

Answer 2

An organisation who processes data on a data controller’s behalf

Question 3

Under GDPR who can be liable to customers if their personal data is breached?

Answer 3

Both the data controller and the data processor.

Question 4

Identify eight principles of the EU General Data Protection Regulation.

Answer 4

Data must be:
Fairly and lawfully processed
Processed for limited purposes
Adequate, relevant and not excessive
Accurate
Not kept longer than necessary
Processed in accordance with individual’s rights
Secure
Not transferred to countries without adequate protection
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Question 5

Identify eight special categories of sensitive personal data under the GDPR where more stringent protection conditions apply.

Answer 5

Ethnic or racial origin.
Political opinions.
Religious beliefs or other beliefs of a similar nature.
Trade union membership.
Physical and mental health.
Sexual life.
Commission or alleged commission of an offence.
Any proceedings for any offence committed or alleged to be committed,

Question 6

Identify seven requirements regarding a data subject giving consent for their data to be processed under the GDPR.

Answer 6

Consent must be:
Freely given
Specific
Informed
Unambiguous
Positive opt in
Easy to withdraw
Separate from other terms and conditions
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Question 7

Identify eight rights of a data subject under the GDPR

Answer 7

The right to be informed.
The right of access.
The right to rectification.
The right to erasure.
The right to restrict processing.
The right to data portability.
The right to object.
Rights in relation to automated decision making and profiling
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Question 8

Under the data protection laws, who is the data subject?

Answer 8

The person whose data is held.

Question 9

What is the age below which parental consent is required under the Data Protection Act 2018

Answer 9

13

Question 10

What Act implements the GDPR into English law?

Answer 10

Data Protection Act 2018

Question 11

What is the maximum fine under the Data Protection Act 2018?

Answer 11

Euro20million or 4% of turnover

Question 12

What are the five overlapping requirements of ethical behaviour?

Answer 12

Integrity
Fairness
Service
Client’s interest
Compliance
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Question 13

What is the purpose of the CII’s code of ethics?

Answer 13

Protect the reputation of the CII

Question 14

Identify the 5 principles of the CII code of ethics

Answer 14

Comply with the code and law
Act with the highest ethical standards and integrity
Act in the best interests of the client
Provide a high standard of service
Treat people fairly

Question 15

Identify the three key areas of training and competence

Answer 15

Assessing competence
Maintaining competence
Record keeping

Question 16

What must a regulated firm do until they are confident an employee is competent in their role?

Answer 16

Supervise them

Question 17

Who is an eligible complainant under FCA rules?

Answer 17

A consumer
Micro enterprise ( less than 10 employees and Euro 10m turnover)
Charity with income less than £1 million
A trust with net asset value of less than £1 million

Question 18

How long do complaints files have to be kept under FCA rules?

Answer 18

3 years

Question 19

Identify six items that should be recorded on a complaints file.

Answer 19

Name of person dealing with complaint
Name of complainant
Capacity (eligible/non-eligible)
Substance of complaint
All correspondence and file notes relating to complaint
Redress offered
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Question 20

Less formal complaints are those resolved within how many days?

Answer 20

3 days

Question 21

What is the time scale for responding to a formal complaint?

Answer 21

8 weeks

Question 22

What are the two ways that a regulated firm can reply to a fornal complaint?

Answer 22

Final response

Written response

Question 23

According the FCA rules, what must a final response to an eligible complainant contain?

Answer 23

Whether the insurer:
Accepts the complaint and offers redress
Offers redress but does not accept complaint
Rejects complaint with reasons for doing so
FOS leaflet
Confirmation that claimant can refer complaint to FOS and must do within 6 months

Question 24

What must be recorded witin a written response to an eligible complainant

Answer 24

Explain why the insurer can not make final response
Inform complainant that they can refer to FOS
FOS leaflet

Question 25

What is the FOS?

Answer 25

Financial Ombudsman Service

Question 26

What is the role of the FOS?

Answer 26

Independent arbitrator for disputes between policy holders (consumers and micto businesses and regulated firms)

Question 27

What is the maximum award the FOS can make for complaints before after April 2022 but before April 2023?

Answer 27

£375,000

Question 28

What is role of the FSCS?

Answer 28

One stop compensation shop to compensate customers of insurers where firms are no longer able to meet claims against them usually insolvent

Question 29

What is the FSCS?

Answer 29

Financial Services Compensation Scheme

Question 30

On what policies do policyholders receive 100% compensation from the FSCS in he event their insurer is insolvent?

Answer 30

Compulsory insurance (Employers Liability Motor)
Professional indemnity
Long term (life and pensions)
Arise from the death or incapacity of the policyholder due to injury, sickness, or infirmity.

Question 31

On what policies do policyholders receive 90% compensation from the FSCS in he event their insurer is insolvent?

Answer 31

Other consumer policies other than
Compulsory insurance (Employers Liability Motor)
Professional indemnity
Long term (life and pensions)
Arise from the death or incapacity of the policyholder due to injury, sickness, or infirmity.

Question 32

How is the FSCS funded?

Answer 32

By a levy on authorised insurers