Complaints & Redress Flashcards

1
Q

Record-keeping & Reporting

A
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

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2
Q

Eligible Complainants

A
  • 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
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3
Q

Clients not deemed Eligible Claimants

A
  • 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
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4
Q

Exceptions to clients not deemed Eligible Claimants

A
  • 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.
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5
Q

Compensation Payable

A

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
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