Chapter 5 (Complaints and redress)

Question 1

If an insurer becomes insolvent, who would a small partnership apply to for compensation in light of a general insurance contract?

Answer 1

FSCS

Question 2

If a claimant puts in a claim with respect to a protected investment with the FSCS for £37,000 what would be the maximum payout?

Answer 2

£37,000

Question 3

To whom is the Financial Service Compensation Scheme (FSCS) PRIMARILY accountable?

Answer 3

The FCA and PRA primarily and to the Treasury indirectly through the regulators.

Question 4

When must a firm normally send a final response to a complainant?

Answer 4

8 weeks

Question 5

How is the Financial Services Compensation Scheme funded?

Answer 5

By investment businesses authorised under the Financial Services and Markets Act 2000

Question 6

If a firm receives a complaint with respect to MiFID business and deals with it within two weeks, how long is it necessary to keep the record of the complaint and its resolution?

Answer 6

Five years from the receipt of the complaint

Question 7

How often must an authorised firm report details concerning complaints received, closed and outstanding to the FCA?

Answer 7

Every 6 months

Question 8

In what circumstances could a claim on the Financial Services Compensation Scheme be made?

Answer 8

When an authorised firm becomes insolvent

Question 9

To whom, in the first instance, should a consumer make a complaint?

Answer 9

The firm itself

Question 10

Firm A is not required to subscribe to the Financial Ombudsman Service (FOS), but decides to submit to the ‘voluntary jurisdiction’. Which of the following is then true?

Answer 10

The FOS decides which complaints about Firm A to investigate

Question 11

If a complaint has not been resolved by a firm who should the complainant turn to next?

Answer 11

Financial Ombudsman

Question 12

If an individual is awarded money in respect of restitution, to whom is it paid first?

Answer 12

FCA