Topic 25 (Consumer rights, complaints and compensation)

Question 1

What is the Alternative Dispute resolution?

Answer 1

• Was introduced in July 2015
• The aim is to reduce the number of disputes between businesses and consumers
• It can involve mediation, adjudication or arbitration

Question 2

What do Unfair contract terms cover?

Answer 2

Fairness, Transparency and good faith

Question 3

How are customer protected under consumer protection?

Answer 3

• Legislation
• Voluntary codes of practice
• Compensation schemes
• Consumer bodies
• Ombudsman bureaux and other arbitration schemes

Question 4

How is the single financial guidance body funded (SFGB)?

Answer 4

Funded by levies on the FS industry pension schemes

Question 5

SFGB creates one organisation from what 3 existing providers of government guidance?

Answer 5

1. The money advice service
2. The pensions advisory service
3. Pension wise

Question 6

What are the 5 stated core functions of SFGB?

Answer 6

1. Pensions guidance
2. Money guidance
3. Debt advice
4. Consumer protection
5. Strategy

Question 7

What is WHICH?

Answer 7

It campaigns to protect consumers rights, reviews products and services and offers independent advice on a variety of subjects

Question 8

What are the features of citizens advice?

Answer 8

• like which? it has a super complaint status
• It provides free, confidential and independent advice
• Is a voice for clients and consumers on issues that matter tot hem
• Help is available online, via telephone and face to face

Question 9

How does the FCA define a complaint?

Answer 9

Any oral or written expression of dissatisfaction, whether justified or not from, or on behalf of an eligible complainant. It involves an allegation that the complaint has suffered or may suffer: financial loss, material distress or material inconvenience

Question 10

What are the record keeping requirements for complaints?

Answer 10

• Records of reportable complaints have to be retained for at least 3 years
• Where the complaint relates to collective portfolio management services for UCITs schemes, the records must be kept for 5 years

Question 11

The 6 monthly reports about complaints must show…?

Answer 11

1- the total number of complaints received

2- total number of complaints closed

Question 12

In regards to super complaints how should the FCA respond?

Answer 12

The FCA is required to respond to a super complaint within 90 days, setting out how it proposes to deal with the complaint and any possible actions

Question 13

What is the role of the FOS?

Answer 13

The FOS is able to deal with complaints brought by eligible complainants

Question 14

What is the role of the pensions ombudsman service?

Answer 14

It doesn’t deal with complaints about state pensions or about the sales and marketing pension schemes

Question 15

Complaints and disputes should first be made in writing too?

Answer 15

The managers or trustees of the pension scheme