Chapter 5: Complaints and Redress

Question 1

How is the FSCS funded?

Answer 1

The Financial Services Compensation Scheme is funded by levies on the authorised community only. The maximum claim for investments is now £85,000.

Question 2

When can ECPs get FSCS stuff?

Answer 2

Any client of an insurance firm (including some professional clients and some eligible counterparties, but not other insurance firms) may also claim in respect of insurance only.

Question 3

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

Answer 3

The money will be paid to the FCA first and then passed on to the individual concerned.
If the money had been in respect of compensation following a liquidation it would be paid out by the FSCS.

Question 4

When can the FOS make an award

Answer 4

The FOS can make awards for a range of reasons including financial loss, pain and suffering, damage to reputation and distress or inconvenience.

Question 5

Can FCA seek redress from unauthorized persons?

Answer 5

In areas such as market abuse and money laundering the FCA have the power to seek redress from both authorised and unauthorised persons if their behaviour has an impact on consumers.

Question 6

What is voluntary vs compulsory jurisdiction?

Answer 6

compulsory where the firm is unable to resolve complaint
voluntary - outside of this opt into VJ

Question 7

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

Answer 7

An acknowledgement letter must be sent promptly, and a final letter within eight weeks.

Question 8

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

Answer 8

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

Question 9

How long do you have to make a claim to FSCS

Answer 9

usually 6 years