Complaints and Redress

Question 1

Eligible complainants

Answer 1

Procedures apply with:

• A consumer
• Businesses with fewer than 10 employees and a turnover of less than €2 million
• Charity which has an annual income of less than £6.5 million at the time the complainant refers the complaint to the respondent
  (4) Trustee of a trust which has a net asset value of less than £5 million at the time the complainant refers the complaint to the respondent

Question 2

Procedures of complaint must be

Answer 2

In writing
Disclosed: at first point of contact or when documentation is first provided, on request, when a complaint is received. Unless the complaint is resolved in 3 business days

Question 3

A firm’s procedures should provide for

Answer 3

-Receiving complaints
-Responding to complaints
-Investigating complaints
-Notifying complainants of the FOS
Firm should use complaints to identify any systemic problems

Question 4

The Financial Ombudsman Service

Answer 4

-Operationally independent of FCA but board appointed by them
-Purpose to free dispute resolution service for eligible complainants, private not public
-Compensation maximum £350,000 for financial losss, pain and suffering, damage to reputation and distress and inconvenience.
If complainant accepts the award it is binding on the firm, the complainant rejects the award they can pursue matter through the courts

Question 5

Super complaints

Answer 5

Can be made by certain, HMT-approved, consumer bodies, can. raise competition and consumer issues to FCA

Question 6

Mass-detriment references

Answer 6

Can be made by FOS or by firms themselves if there has been: regular failures by a firm to comply with regulatory requirements, resulting in loss or potential loss to consumers. Firm acting in a way in which if a complaint was to made to FOS, the FOS is likely to find in favour of the complainant

Question 7

FCA time to respond to super complaints and mass-detriment references

Answer 7

Must respond within 90 days

Question 8

Financial Services Compensation Scheme

Answer 8

Allows clients to claim for losses when a firm goes into liquidation
Eligible claimants
-Deposits max £85k
-Investments  max £85k
-Home finance max £85k
All clients
-Compulsory insurance 100% of claim
-General insurance 90% of claim

Question 9

Per the complaints procedures, how often are firms required to file a summary report of complaints received

Answer 9

Semi-annually

Question 10

Who FCSC is primarily responsible to

Answer 10

FCA/PRA and Treasury indirectly