Complaints and Redress Flashcards
Complainants - when are micro-enterprises eligible?
Employees <10
Balance sheet <€2mn
Complainants - when are charities eligible?
Annual income <£6.5mn
Complainants - when are trustees of a trust eligible?
When trust NAV <£5mn at the time the complaint is raised.
Complainants - when are certain SMEs eligible?
Turnover <£6.5mn
Balance sheet <£5mn
Employees <50
Who else is eligible to complaints regardless of any other conditions?
Consumers - aka individual acting in a private capacity
Complaints - in what form should the procedures of the firm be disclosed?
In writing
Complaints - when must firms disclose procedures? (3pts)
- At first point of contact/when documentation is first provided
- On request
- When a complaint is received
Complaints - what is an exception to firm having to disclose procedures?
If complaint is resolved in 3 business days.
4 things that the firm’s procedures should provide for?
- Receiving complaints
- Responding to complaints
- Investigating complaints
- Notifying complainants of the FOS (independent sufficient authority)
What is the FOS? And its purpose?
Financial Ombudsman Service
Free and private dispute resolution service for the clients of authorised firms.
Who is the FOS available to and what is max award from scheme?
Available to eligible complainants
Max award is £415,000
Scope of FOS?
- Compulsory jurisdiction for authorised firms
- Voluntary jurisdiction for other firms
What must a firm do first after receiving complaint and under what timeline?
Send written acknowledgement of a complaint and a copy of the complaints procedures
Send this promptly
How long does a firm have to send a final response to a complaint?
within 8 weeks of receipt of the complaint
What happens if complaint is unresolved - what must do (3 things)?
- Explain why
- Explain when it will likely be resolved
- Inform complaint they can approach FOS within 6 months
Transparency as a Regulatory Tool - when must a firm publish details on their complaints?
When a firm receives >500 complaints in a given 6-month period
Transparency as a Regulatory Tool - what detail must the firm publish?
Total number of complaints opened and closed (includes all complaints)
No. of complaints closed within 8 weeks
% of complaints upheld
Transparency as a Regulatory Tool - which regulator uses this and for what?
FCA uses the info to produce consolidated lists of complaints data covering all affected firms.
FOS - who operates it and who is the board appointed by?
Operated independent of FCA
Board appointed by FCA
FOS - private or public?
PRivate
What happens if the complainant accepts/rejects award from FOS?
If accepts, it is binding on the firm
If rejects, the complainant can pursue matter through the courts
Who can super-complaints be made by and who do they complain to/about what?
Certain HMT-approved consumer bodies
These consumer bodies can raise competition and consumer issues.
To the FCA
Who can make mass-detriment references?
FOS
Firms themselves
What are 2 conditions for mass-detriment references to be made?
- Regular failures by a firm(s) to comply with regulatory requirements resulting in loss or potential loss to consumers
- Firms acting in a way in which, if a complaint was made to FOS, the FOS is likely to find in favour of complainant
