Complaints and Redress Flashcards
what is the purpose of the FOS
free dispute resolution service for eligible complainants,
private not public
what is the compensation from FOS
max award to complainants: £350,000 (and reasonable costs)
- if complainant accepts the award, it is binding on the firm
- if complainant rejects the award, they can pursue the matter through the courts (only now can court get involved)
what does the FCA use transparency as
a regulatory tool -> naming and shaming firms.
firms receiving over 500 complaints in a six month period have to publish statistics
what if a complaint is dealt with in less than three days
it is not a complaint
what is the FSCS, is it the same as the FOS and what is it for
financial services compensation scheme,
completely separate body from FOS and FCA,
jointly overseen by FCA and PRA,
allows clients to claim for losses when a firm goes into liquidation
how does the FOS link to the FCA
operationally independent of the FCA,
board appointed by FCA
what is a super-complaint
made by certain, HMT-approved, consumer bodies on behalf of thousands of complainants (PPI mis-sold to millions of consumers)
what are the complaints procedures
in writing, disclosed -at first point of contact -on request -when complaint received unless -complaint resolved in three business days
what are the timings after a complaint
a week to acknowledge complaint,
8 weeks to resolve,
if after 8 the complaint still unresolved:
-explain why and when likely to be resolved
-inform complainant that they may approach financial ombudsman service (FOS)
who is an eligible complainant
consumer,
businesses with fewer than 10 employees and turnover of less than EUR2m (micro-enterprise),
charities with annual income of less than £1m,
trusts with net assets less than £1m,
certain SMEs with annual turnover less than £6.5m and balance sheet theshold of £5m, or fewer than 50 employees
what if another firm or eligible counterparty makes a complaint
not need to be recorded and dealt with through these FCA processes, nor can they use the financial ombudsman service. would be business or commercial matter
when does the FOS kick in
eligible complainant unsatisfied with response
what happens when an eligible complainant makes a complaint
firm given first opportunity to put things right,
they need to have procedures for
- receiving complaints
- responding to complaints
- investigating complaints
- notifying complainants of FOS
how long does FCA have to respond to super-complaint or mass detriment
90 days
what is mass-detriment
where FOS or firm ask FCA to take action if there has been:
- regular failure by firm to comply with regulatory requirements
- firm acting in a way which, if complaint made to FOS, the FOS is likely to find in favour of the complainant
