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UK Financial Regulations > Complaints and Redress > Flashcards

Complaints and Redress Flashcards

1
Q

Complainants - when are micro-enterprises eligible?

A

Employees <10
Balance sheet <€2mn

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2
Q

Complainants - when are charities eligible?

A

Annual income <£6.5mn

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3
Q

Complainants - when are trustees of a trust eligible?

A

When trust NAV <£5mn at the time the complaint is raised.

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4
Q

Complainants - when are certain SMEs eligible?

A

Turnover <£6.5mn
Balance sheet <£5mn
Employees <50

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5
Q

Who else is eligible to complaints regardless of any other conditions?

A

Consumers - aka individual acting in a private capacity

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6
Q

Complaints - in what form should the procedures of the firm be disclosed?

A

In writing

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7
Q

Complaints - when must firms disclose procedures? (3pts)

A
  1. At first point of contact/when documentation is first provided
  2. On request
  3. When a complaint is received
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8
Q

Complaints - what is an exception to firm having to disclose procedures?

A

If complaint is resolved in 3 business days.

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9
Q

4 things that the firm’s procedures should provide for?

A
  1. Receiving complaints
  2. Responding to complaints
  3. Investigating complaints
  4. Notifying complainants of the FOS (independent sufficient authority)
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10
Q

What is the FOS? And its purpose?

A

Financial Ombudsman Service
Free and private dispute resolution service for the clients of authorised firms.

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11
Q

Who is the FOS available to and what is max award from scheme?

A

Available to eligible complainants
Max award is £415,000

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12
Q

Scope of FOS?

A
  1. Compulsory jurisdiction for authorised firms
  2. Voluntary jurisdiction for other firms
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13
Q

What must a firm do first after receiving complaint and under what timeline?

A

Send written acknowledgement of a complaint and a copy of the complaints procedures
Send this promptly

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14
Q

How long does a firm have to send a final response to a complaint?

A

within 8 weeks of receipt of the complaint

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15
Q

What happens if complaint is unresolved - what must do (3 things)?

A
  1. Explain why
  2. Explain when it will likely be resolved
  3. Inform complaint they can approach FOS within 6 months
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16
Q

Transparency as a Regulatory Tool - when must a firm publish details on their complaints?

A

When a firm receives >500 complaints in a given 6-month period

17
Q

Transparency as a Regulatory Tool - what detail must the firm publish?

A

Total number of complaints opened and closed (includes all complaints)
No. of complaints closed within 8 weeks
% of complaints upheld

18
Q

Transparency as a Regulatory Tool - which regulator uses this and for what?

A

FCA uses the info to produce consolidated lists of complaints data covering all affected firms.

19
Q

FOS - who operates it and who is the board appointed by?

A

Operated independent of FCA
Board appointed by FCA

20
Q

FOS - private or public?

21
Q

What happens if the complainant accepts/rejects award from FOS?

A

If accepts, it is binding on the firm
If rejects, the complainant can pursue matter through the courts

22
Q

Who can super-complaints be made by and who do they complain to/about what?

A

Certain HMT-approved consumer bodies
These consumer bodies can raise competition and consumer issues.
To the FCA

23
Q

Who can make mass-detriment references?

A

FOS
Firms themselves

24
Q

What are 2 conditions for mass-detriment references to be made?

A
  1. Regular failures by a firm(s) to comply with regulatory requirements resulting in loss or potential loss to consumers
  2. Firms acting in a way in which, if a complaint was made to FOS, the FOS is likely to find in favour of complainant
25
Q

For super-complaints or mass-detriment complaints, how long does FCA have to respond and what must it detail in response?

A

Within 90 days
Explain what the FCA intends to do

26
Q

What does FSCS enable?

A

Financial Services Compensation Scheme
Allows clients to claim for losses when a firm goes into liquidation

27
Q

Who are eligible claimants under FSCS and who else (all clients) can benefit from scheme?

A

Eligible complaints are basically all RCs.
All clients are generally insurance firms - intermediate customers and market counterparties can make limited claims in respect of insurance losses.

28
Q

Eligible claimants under FSCS - what are 3 things they can claim for and what is max claim for all 3

A
  1. Deposits
  2. Investments
  3. Home finance
    Max claim for all is £85,000
29
Q

All clients under FSCS - for compulsory insurance, how much can client claim for?

A

100% of claim

30
Q

All clients under FSCS - for general insurance, how much can client claim for?

A

90% of claim

31
Q

What is max pay-out by FSCS each year?

UK Financial Regulations (6 decks)

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