Info Flashcards
What is MIFID?
MiFID is Markets In Financial Instruments Directive, it applies to firms who trade in shares, bonds, units in a collective investment and derivatives.
Life assurance, pensions and mortgages are out of the scope of MiFID
FCA eligible complainants
- Private individual, including individuals acting as personal guarantors for loans to businesses they are involved in and consumer buy to let consumers
- A business with an annual turnover below £6.5m and fewer than 50 employees or an annual balance sheet below £5m
- A charity with an income of less than £6.5m when the complaint is made
- A trustee of a trust that has a net asset value of less than £5m when the complaint is made or
- A micro-enterprise that employs fewer than 10 people and has a turnover or an annual balance sheet that does not exceed €2m
Complaints resolved quickly
Firms can resolve complaints by the close of business on the third working day following receipt, this usually applies to minor service issues such as rudeness by a staff member or misspelling of a name or address
How long should complaints be held?
Records have to be retained for at least 3 years from the date a complaint is received
When the complaint related to collective portfolio management services for a UCITS scheme, the minimum period it should be kept is 5 years.
Where the complaint relates to MiFID business, records should be kept for 5 years and a maximum of 7 years.
Who can make Super-Complaints and what is the FCA required to do?
Consumer bodies such as Which? and Citizens Advice can make super-complaints to the FCA.
FCA must respond to super-complaints within 90 days setting out how it proposes to deal with the complaint and any actions.
What actions can the FCA take on Super-Complaints
- Announce plans to consult on an issue
- Set out a timetable for regulatory action which would allow FOS whether or not to place a hold or stay on complaints
- explain how the FCA is already taking action to address the issue, or
- explain why its not taking any action
What is the time limit for complaints to FOS?
Complaints to the FOS must be made within 6 months of receiving a final response, 6 years of the event that gives rise to the complaint or 3 years of the time when the complainant should have become aware they had cause for complaint, whichever is the later.
What is the role of the Pensions Ombudsman Service and when can complaints be made?
The Pensions Ombudsman Service deal with complaints and disputes relating to the running of personal and occupational pension schemes and also with complaints about the Pension Protection Fund.
Complaints and disputes must be communicated in writing within 3 years of the event being complained about.
What is the protection from FSCS for deposits?
100% of £85,000 is paid out per person per firm, there is cover up to £1m for temporarily high deposit balances.
Temporary boosted deposits by life events such as:
- Sale of house
- Divorce settlement
- Taking pension benefits
- Receipt of inheritance
- Redundancy payment
- Criminal injuries compensation.
FSCS protection for debt management, investment and home finance
The protection for debt management, investment and home finance is 100% of £85,000 per person per firm
FSCS protection for insurance companies
For all long term insurance and for certain types of general insurance the protection is 100%
Where a long term policy has a savings element as protection the protection element has 100%
Annuities that are being used to provide income also receive 100% protection
if insurance is compulsory such as employers liability or motor insurance, the figure is 100%
For all other types of insurance the compensation limit is 90% no upper limit
Insurance brokers compensation is 90% with no upper limit
