CHAPTER 10 - E Flashcards
What is the purpose of the Financial Ombudsman Service (FOS)?
To deal with unresolved disputes between consumers and financial firms
The FOS is a free, independent and impartial service.
What must all authorized firms have regarding complaints?
A written complaints procedure
This is mandated by the FCA Handbook.
What types of complainants are considered ‘eligible’ by the FOS?
Consumers, micro-enterprises, charities, trustees of trusts, small businesses, guarantors
Each category has specific criteria regarding size and income.
What happens if a complainant is dissatisfied after exhausting internal complaints procedures?
They can refer their complaint to the FOS
Legal proceedings must be withdrawn before approaching the FOS.
Within what time frame must a complaint be referred to the FOS?
Within six months of the final decision letter, six years after the event, or three years after awareness of the complaint
Exceptions apply in certain circumstances.
What is a ‘directions award’ from the FOS?
An order telling the firm what actions to take to rectify the situation
This could include paying a previously rejected claim or issuing an apology.
What are the funding sources for the FOS?
General levy paid by all firms and case fees from the firm related to the complaint
This ensures the FOS can operate effectively.
True or False: The FOS is bound by law or legal precedent in its decisions.
False
The FOS makes judgments based on what is fair and reasonable.
What is the maximum monetary award the FOS can require a firm to pay?
The maximum amount is outlined in a specific table provided by the FOS
The FOS may recommend a higher figure, but it is not binding.
What does FSCS stand for?
Financial Services Compensation Scheme
It protects insureds when their insurer cannot pay valid claims.
What type of insurance has 100% protection under FSCS?
Compulsory insurances, professional indemnity insurance, long-term insurance, certain injury claims
This ensures complete coverage for these specific policies.
What triggers FSCS involvement?
The insurer going into ‘default’
This typically occurs when the insurer is put into provisional liquidation.
What is the role of the Central Fund in Lloyd’s?
To ensure claims can be settled even if individual syndicates cannot pay
It provides a financial safety net within the Lloyd’s market.
Fill in the blank: The FOS aims to ensure that customers are treated ______.
[fairly]
Who can receive complaints at Lloyd’s?
Eligible insureds who would otherwise qualify for FOS
The Lloyd’s complaints department acts as an interface with the FOS.
What type of complaints can a London Market insurer receive?
Complaints from both overseas and UK-based clients
Responses must comply with the rules applicable to the complaint’s origin.
What must be communicated to clients regarding complaints?
Who to contact for complaints, including postal address, email, and telephone number
This information should be clear and accessible.
