Complaints

Question 1

Who are eligible complainants?

Answer 1

• a consumer
• an enterprise with fewer than 10 employees and a turnover/balance sheet not exceeding 2 million
• charities with an annual income of less than £6.5 million
• trustee of a trust with net asset value of less than £5 million at the time the complaint is raised
• small businesses with an annual turnover of less than £6.5 million and below the threshold of less than 50 employees or an annual turnover of less than £6.5 million
• a person acting for purposes outside their trade, business or professions

ECPs are not eligible complainants

Question 2

What must a firm assess when receiving a complaint?

Answer 2

• whether the firm should be upheld or not
• whether a form of redress is necessary
• is another firm at fault for the complaint?

Question 3

Who does complaint root analysis?

Answer 3

Firms are required to appoint a senior manager within the firm to consider the root causes of complaints and to review recent FOS decisions.

Question 4

How can firms aid awareness on complaints for consumers?

Answer 4

Publish appropriate information regarding internal procedures

refer eligible complainants to availability of the information

provide such information in writing free of charge

Question 5

What are the record keeping requirements for firms and complainants?

Answer 5

Firms must keep a record of
- the name of the complainant
- the substance of the complaint
- details of correspondence between the firm and the complainant

Question 6

FCA REG RETURNS

Answer 6

number of complaints received by the firm
how many complainants have been closed
the type of complaint
the product in the complaint
the amount of redress paid to the complainant

Question 7

What section of the FCA Handbook outlines complaints?

Answer 7

DISP.1.1A.10

Question 8

What must firms that receive 500 or more complaints in a six month period required to publish?

Answer 8

• How many complaints open/closed
• the percentage closed within eight weeks
• percentage of complaints upheld

Question 9

What is the role of the Financial Ombudsman Service?

Answer 9

The FSA was given the power to make rules relating to complaints
The dispute resolution scheme is the FOS and Financial Ombudsman Service operates it

Question 10

What does the FCA define as a complaint?

Answer 10

‘the provision or failure to provide a financial service which they have suffered financial loss, material distress or material inconvenience and relates to the activity which the respondent has some connection in marketing or providing financial services products’

Question 11

What are the timeframes for a eligible complainant

Answer 11

• six years from the event being complained about
• three years from becoming aware they could make a complaint

Question 12

complaint limit on or after 1 April 2023

Answer 12

£415,000

Question 13

complaint limit on or after 1 April 2022

Answer 13

£375,000

Question 14

complaint limit after 1 April 2022

Answer 14

£170,000

Question 15

Voluntary jurisdictions

Answer 15

• lending on mortgages by non-FCA authorised firms
• other specified lending activity
• providing payments on plastic cards
• accepting deposits and providing general insurance

Question 16

SUPER COMPLAINTS

Answer 16

consumer organisations are able to make super complaints and provide consumer bodies with a way of raising competition and consumer issues with the FCA

mass detriment needs to be significantly harming the interests of consumers

consumer body needs to set out why the UK market has a feature that could significantly harm consumers
- actions of a person
- features of the market
- conduct relating to the market concerned of customers of any person who supplies goods/services

Question 17

Eligible complainants of the FSCS

Answer 17

most clients of defaulting firms except
- other authorised firms (sole trader, credit union, trustee of a stakeholder pension scheme)

• collective investment schemes and firms acting as the operator
• pension and retirement funds
• overseas financial institutions
• large mutual associations

Question 18

What is a protected claim?

Answer 18

• protected deposit
• protected contract of insurance
• protected home finance mediation
• non-investment insurance mediation

Question 19

protected complaint compensation limits

Answer 19

• protected insurance - 100% of the claim
• protected compulsory insurance - 100% of the claim
• protect non-compulsory insurance - 90% of the claim
• protected investment business and home finance advice
• protected deposits - up to £85,000 per financial institution

The limit of £85,000 is for each customer, so joint accounts are guaranteed up to £170,000 per financial institution that has the deposit taking permission (banking licence). Large balances of £1 million

Question 20

Compensation framework review

Answer 20

2021 December review
- review of the use and purpose of the FSCS

Next steps will have four aims
- liabilities that are known are dealt with effectively and efficiently
- funding model for existing and future liabilities continues to apportion costs
- compensation limits are appropriate
- scope of the FSCS protection is adapted over time in the context of workstreams looking at the way sectors are regulated

Question 21

What are the two stages for each complaint made to the FCA/PRA/BoE

Answer 21

THE FIRST STAGE
- the regulators will investigate any complaint that meets the requirements of the complaint scheme

THE SECOND
- investigations of the complaint by the complaint commissioner whenever he finds for the complainant
- identify areas of redress

Question 22

Themes excluded from the complaints scheme

Answer 22

• complaints about the FOS, FSCS actions or inactions
• complaints about relationship between the regulator and their employers
• complaints relating to a contractual/commercial dispute
• complaints regarding the regulators legislative functions