Topic 25 Flashcards
Jason has just made a complaint alleging that his personal pension plan was mis-sold to him. He has complained to the pension company initially and has received a final response letter. Who should he now take this complaint to?
A. The Prudential Regulatory Authority
B. The Pensions Ombudsman
C. The Pensions Advisory Service
D. The Financial Ombudsman Service
D. The Financial Ombudsman Service
The Financial Ombudsman Service deals with unresolved complaints in respect of:
A. general insurance brokers
B. Bank of England Base Rate
C. administration of occupational pension scheme complaints
D. LIBOR
A. general insurance brokers
The Financial Services Compensation Scheme will pay out compensation to customers who have:
A. been mis-sold a mortgage endowment policy
B. lost money through the insolvency of an authorised firm
C. been mis-sold a personal pension plan
D. lost money through the mis-management of an investment fund
B. lost money through the insolvency of an authorised firm
What is the effect of the final response letter for a customer who is in the process of making a complaint about a financial services product they have bought?
A. They will now have to take legal action to obtain redress
B. They can now take the complaint to the Financial Ombudsman Service
C. The Financial Ombudsman Service has found their complaint frivolous
D. The customer will have to pay to progress the complaint further
B. They can now take the complaint to the Financial Ombudsman Service
On the insolvency of an authorised investment firm, the MAXIMUM that could be paid out to an individual investor from the Financial Services Compensation Scheme would be:
A. 100% of the first £50,000
B. 100% of the first £20,000 plus 90% of the next £50,000
C. 100% of the first £20,000 plus 90% of the next £30,000
D. 100% of the first £85,000
D. 100% of the first £85,000
Regulations established under the Financial Conduct Authority require firms to make a commitment to try to resolve complaints within:
A. 3 working days
B. 1 month
C. 8 weeks
D. 3 months
C. 8 weeks
Which one of the following is FALSE regarding complaints referred to an Ombudsman?
A. The company involved should investigate the complaint before the Ombudsman
B. The company will often take the matter to court following the Ombudsman’s ruling.
C. The Ombudsman’s decision is binding on the company
D. The Ombudsman can give awards of up to £350,000 plus interest and costs for complaints relating to events after 1 April 2019
B. The company will often take the matter to court following the Ombudsman’s ruling.
Ruth lost £90,000 when a UK investment firm became insolvent. What is the MAXIMUM amount that the Financial Services Compensation Scheme will pay her in compensation?
A. £42,000
B. £85,000
C. £54,000
D. £60,000
B. £85,000
The Pensions Ombudsman may deal with unresolved complaints in respect of:
A. personal pension schemes
B. state pensions
C. the administration of occupational pension schemes
D. Stakeholder pension schemes
C. the administration of occupational pension schemes
Which one of the following is NOT true in relation to the rules relating to the Financial Ombudsman Service?
A. The maximum pay out under the FOS for events before April 2019 is £160,000.
B. Records of complaints have to be kept for at least three years
C. All complaints must be investigated where possible by someone of sufficient competence who is not directly involved.
D. Authorised firms have to pay a case fee of £500 for every complaint that goes to the FOS
D. Authorised firms have to pay a case fee of £500 for every complaint that goes to the FOS
Jane opens a deposit account with the Moorland Building Society and deposits £10,000. She is worried about the money if the building society goes out of business. If this were to happen, how much would she receive from the Financial Services Compensation Scheme?
A. £8,400
B. £9,000
C. £10,000
D. £8,000
C. £10,000
Which of the following statements best describes the situation applying where a contract is found to contain a term that is deemed to be unfair?
A. As long as it is practical, the rest of the contract can continue
B. The business can choose to bind the consumer to the contract
C. The contract will continue as specified
D. The whole contact will be invalid
A. As long as it is practical, the rest of the contract can continue
David’s car insurer has gone out of business and he has lost £2,000 on his compulsory third party policy. How much compensation if any may he be entitled to receive from the FSCS?
A. none
B. £1,000
C. £1,800
D. £2,000
D. £2,000
Which one of the following is NOT one of the areas covered by the rules on unfairness as detailed in the Consumer Rights Act 2015?
A. The contract should be made in good faith
B. The contract should be transparent
C. The terms should be fair
D. There must be insurable interest
D. There must be insurable interest
Which of the following claims would be covered by the Financial Services Compensation Scheme?
A. Damian, who is talking to his motor insurer about an accident with an uninsured driver
B. David who has claimed against his high street bank for the advice he received about PPI cover
C. Mike whose complaint about investment advice was upheld but not honoured due to the default of his adviser
D. Paul who is claiming in relation to his offshore investment with a bank in the Isle of Man
C. Mike whose complaint about investment advice was upheld but not honoured due to the default of his adviser
