Complaints & Redress Flashcards
Record-keeping & Reporting
Submit twice-yearly report to FCA on: • Complaints opened • Complaints closed within 4 or 8 weeks • Complaints closed after 8 weeks • Amounts of redress paid
Separate annual return for complaints about payment services:
• Complaints opened
• Complaints closed < 3 biz days
• Complaints closed > 3 biz days, within 15 biz days
• Complaints closed > 15 days, within 35 days
• Complaints closed > 35 biz days
• Complaints closed > 8 weeks
Eligible Complainants
- Consumers
- Micro-enterprises - engaged in economic activity, employ < 10 persons, turnover or balance sheet not exceeding €2million
- Charities - annual income < £6.5 million
- Trustee of a trust - net asset value < £5million
- Certain SMEs - annual turnover < £6.5 million, balance sheet threshold £5million, or < 50 employees
Clients not deemed Eligible Claimants
- Other auth firms, but there are exceptions
- Overseas financial institutions
- CISs, their trustees & operators
- Pension & retirement funds, but exceptions apply
- Supranational institutions, govs, central administration authorities
- Provincial, regional, local, municipal authorities
- Directors & managers + relatives of default firm
- Companies in same group as default firm
- Persons holding 5% or more of default firm capital
- Auditors of default firm
- Any person who contributed to firm default
- Large companies/ mutual associations
- Large partnerships
- Persons whose claim arises from transactions linked to ML conviction
- Persons whose claim arises under 3rd Parties (Rights Against Insurers) Act 1930
Exceptions to clients not deemed Eligible Claimants
- Authorised firms - if claim from activity they don’t have permission for if they’re sole traders, credit unions, trustee/operator of stakeholder/personal pension scheme, small biz (annual turnover less than £1mil).
- Pension funds - Trustees of small self-administered schemes or occupational schemes, where employee isn’t large company/partnership/mutual association.
Compensation Payable
BANKS, BUILDING SOCIETIES, CREDIT UNIONS
- up to £85k per person, per institution, or up to £170k for joint accounts
INSURANCE FIRMS
- 100% protected - Compulsory insurance, Long term insurance, Professional indemnity insurance, Claims arise from death or incapacity due to sickness, injury or infirmity.
- 90% protected - All other insurance types
INSURANCE BROKERS/FINANCIAL ADVISERS
- 100% protected - Compulsory general insurance
90% protected - All other general insurances
INVESTMENTS
- Up to £85k per eligible person, per firm
PENSIONS
- Pension provider fails - 100% of claim, no upper limit
- SIPP operator fails or Bad pension advice - up to £85k per eligible person, per firm