Complaints and Redress Flashcards
What should internal complaints handling capture?
- Receiving, acknowledging and responding to complaints
- investigating
- notifying rights with regard to FOS
Where are the complaint handling rules contained?
In FCAs dispute resolution: complaints sourcebook
To give consumers awareness of their regulatory protections with complaints, what must a firm publish?
- summary of internal processes
- rights to go to FOS
- send details of complaint process in witting at POS or when requested
What does DISP 1.3 cover?
Firms obligations to investigate and remediate complaints
What does DISP 1.2 cover?
The firms obligations to share details on the complaints process
What does DISP 1.4 cover?
Firm must investigate complaint competently and impartially, and resolve promptly
3 stages FCA sets out for a complaint?
- Prompt written acknowledgement that complaint is being dealt with
- Regular progress updates
- Within 8 weeks send a written response
How long should complaint records be kept?
5 years for MIFID, 3 years for all others
Twice a year firms must submit what data with regard to complaints?
- number of complaints open
- number closed in 4 / 8 weeks or after the deadline
- Amount of redress paid
3 options for final response to complaints?
- accept and offer redress or remedial action
- offer remedy but not accept
- reject and explain why
What must a final response to a complaint contain?
- details on FOS process and leaflet
- if delayed over 8 weeks explain why
Who are eligible complaints to the FOS?
Consumers
Micro enterprise
Charities
Trustees of trust
Small SMEs
Person acting for purposes (e.g. buy to let borrower)
PSD or EMD complaint timelines?
- 15 days
- Or in exceptional circumstances 35 days
Changes to FCA complaints brought in in 2015?
- 3 days to respond less formally in full to the complaint
- Report all complaints to regulator
- FOS details sent to consumer
- Limits cost of calls for consumer
What is the pension ombudsman?
Independent organisation set up to help people resolve their pension disputes and complaints
Timeline to complain to the pension ombudsman?
Within 3 years of the event or you become aware of the incident
Methods to resolve complaint to PO?
Early resolution service for simple cases
Adjudicator for more complex cases
Are decisions by pension ombudsman final?
Yes and enforceable in court (unless appealed on a point of law)
Who is the pension protection fund accountable to?
Parliament
What is the compulsory jurisdiction of the FOS?
Complaints against FCA firms regarding their regulated (or ancillary) activities
What is the voluntary jurisdiction for the FOS?
Covers complaints not covered under authorised firm regulation, so firms opt in to this oversight
Timeline of FOS complaint amounts over time?
- £160k for acts before April 2019, referred before April 2022
- £170k for acts before April 2019, referred after April 2022
- £355k for acts between April 2020 and March 2022, referred after April 2019
- £375k for acts after April 2019, referred after April 2022
How will future FOS complaint award amounts increase?
In line with CPI inflation each April, rounded down to nearest £5k limit
What is the purpose of FSCS?
To pay compensation to eligible claimants in the event an authorised firm defaults
What does FSCS compensation cover?
Financial loss, so will try to return investment principle not lost investment gains
Amount covered by FSCS in a bank account?
- 85k for individual
- 170k on a joint account
- £1m for up to 6 months if a temporary balance
How much of the insurance policy is protected under FSCS?
100% - compulsory, or long term insurance. Professional indemnity or death policies
90% - All other insurance
How much does FSCS cover for pensions?
100% if pension provider fails
£85k in a SIPP or if bad pension advice given
What is a super complaint?
When a consumer body raised a market competition or consumer issue
Who can make a super complaint?
Designated consumer bodies, designated by HM Treasury
What is a mass detriment reference?
Complaint by firm or FOS if
- multiple regular firm failures
- firms acting in a way complaint likely to be upheld
How long does FCA have to respond to a super complaint?
90 days
