Chapter 4

Question 1

Complaints

Answer 1

All authorised firms need FCA approved complaints procedures for eligible complainant (retail or consumer):
- Must be written and published
- Communicated to all staff affected (training)
When a customer makes a complaint:
- 8 weeks to resolve to customer satisfaction
- If unresolved, then firm has to contact complainant when it is likely to be resolved
- Inform the complainant that they may approach the FOS
Firm sends summary report to FCA:
- Every 6 months
- Total received complaints, # resolved in 4 weeks, 6-8 weeks and unresolved
- # complaints outstanding
- # complaints accepted as valid by the firm

Question 2

FOS

Answer 2

Financial Ombudsman Service, free dispute resolution service for eligible complainants:
- FOS will investigate and can make an award to complainant based on distress, etc.
- If complainant accepts, the award is binding on the firm
- If complainant rejects FOS award, the complainant can pursue through court
Authorised firms conducting regualted activities are subject to compulsory jurisdiction of the FOS, i.e. have to accept awards by the FOS
Many firms opt in for voluntary jurisdiction of the FOS as the structure of the complaint means the complainant cannot go straight to the court (out of public environment)
Maximum award is £415,000 plus reasonable costs

Question 3

FSCS

Answer 3

Financial Services Compensation Scheme