Complaints and Compensation Flashcards
What is a complaint
Any expression of dissatisfaction about any financial services authority provided or with your firm.
What are the FCA requirements for complaints handling?
- Establish complaints handling procedures and make customers aware of them
- Deal with complaints promptly and fairly, consistently and professionally
- Aim to resolve complaints within 8 weeks
- complaints handling report sent to the FCA every 6 months
- Inform those making complaints that complaints can be referred to the Financial Ombudsman
What does the FCA complaints handling best practice guide suggest?
- Consider the info provided by the customer
- Acknowledge the complaint
- Record the complaint
- Can it be dealt with immediately?
- Advise the customer on the next steps
- Action complaint through internal channels
- Don’t make a premature judgement
What is the Financial Ombudsman Service (FOS)?
Who does it help?
The FOS deals with deadlocked complaints that can’t be dealt with through internal channels by offering mediation and reconciliation.
The FOS helps individuals and unincorporated businesses
What are the FOS’s powers?
When won’t they help?
- Power to review all correspondance and documentation
- Power to award up to £150,000
They won’t help when:
- Complaint is subject to court proceedings
- Matters considered to be commercial judgement
What is the Financial Services Compensation Scheme (FSCS)?
Who does it protect?
A statutory fund of last resort if an authorised firm cannot meet the monetary claims against it.
It protects personal customers and some smalle businesses.
What does the FSCS cover and how much does it cover?
- deposits
- 100% of first £85,000 per person for joint accounts
- 100% of first £85,000 per separately authorised firm
- insurance
- Compulsary insurance covered in full
- Non-compulsary - 90% of claim
- investment activities
- £50,000 per person per firm (post 2010)
- First £30,000 + 0.9 * next £20,000
- mortgages
- £50,000 per person per firm
