Chapter 4 Flashcards
Who is an eligible complainant
A retail client or customer
What must internal complaints procedures cover
- receiving complaints
- responding to complaints
- referring complaints to other firms
- the appropriate investigation of complaints
- notifying complainants of their right to go go the FOS
When must a firm send a complaint response to the complainant by
8 weeks
What must a firm do if the complaint in unresolved after 8 weeks
Still send a final response
Explain why the complaint hasn’t been resolved and when it is likely to be resolved
Enclose a copy of the standard explanatory leaflet and inform them that they can go go the FOS
How often does a firm have to send a summary complaints report to the FCA
Every 6 months
How long must non mifid business records of complaints be kept
3 years
How long must MIFID business complaints records be kept
5 years
When is a complaint closed
When the firm has sent a final response and the complainant has accepted response or not replied in 8 weeks
Who is the financial ombudsman service
A free dispute resolution service for eligible complainants
Who are eligible complainants for the FOS
Retail clients
What happens if the complainant doesn’t accept the FOS compensation
The complainant can take it through the court
Who is under compulsory jurisdiction by the FOS
Authorized firms
Who is under voluntary jurisdiction from the FOS
Firms conducting investment business such as credit card services
When can the FOS dismiss a complaint
When the complainant hasn’t suffered any financial loss or distress
The firm had already paid reasonable compensation
What is the max compensation
£375,000
When would someone complain to the pension ombudsman
When a pension is taking too long to do something without a good reason or giving incorrect info or breaking a promise
What is the FSCS for
It enables contents to claim for losses when a firm goes into liquidation
Who has to join the FSCS
All authorized firms have to join the FSCS as a condition of being authorized
What is the mutual protection service
All firms having to chip in to pay back clients if one of them go bust
What is the max payout for the FSCS
There is no max payout
What claims can be made to the FSCS
- designated investment business up to £85,000
- deposits up to £85,000
- Long term insurance 100% of claim
What is the relationship between the FSCS and the FOS
They have nothing to do with each other
How long can a complaint be referred to the FOS to
Within 6 years of event being complained of
Or within 3 years of knowing about problem
6 months of firm’s final response
To who is the FSCS accounta le
The FCA and PRA directly
The treasury indirectly through the FCA and PRA
Is the FOS independent of the FCA
Yes
Who is the FOS for
Retail clients - individual, some companies, charities and trusts
If a party does not agree with the assessment from the FOS what is the next step
A written statement should be given to the party from the FOS with the determination and the reasons for it
Which sort of business is covered by the FSCS
Protected business
What is protected business
Designated business
Activities of manager or trustee of an AUT
Activities of an authorized corporate director or a depositary of an ICVC
is an eligible counterparty entitled to the FSCS?
no
how is the max reward funded for the FSCS
by levys on authorised firms
if a firms final response does not meet a clients satisfaction can they go to the FOS?
yes
when can a firm consider the complaint resolved
when the client does not reply to a written response to the firm
who are eligible complainants to the FOS
retail clients
