CII R01 Complaints Handling 2 — Questions and Answers
Question 1: What must firms do when they receive a complaint?
- Wait for the customer to submit it in writing
- Send a prompt written acknowledgement and ensure the complaint is handled by an appropriate person (Correct answer)
- Refer it directly to the FOS
- Ignore it if it seems trivial
Correct answer: Send a prompt written acknowledgement and ensure the complaint is handled by an appropriate person
Upon receiving a complaint, firms must send a prompt written acknowledgement, provide the name or title of the person handling it, and indicate they have procedures in place to handle complaints fairly.
Question 2: What is 'root cause analysis' in the context of complaints handling?
- Analysing the gardening industry's financial complaints
- Investigating the underlying causes of complaints to identify systemic issues and prevent recurrence (Correct answer)
- Determining which staff member caused the complaint
- Analysing the customer's history to find the root of their dissatisfaction
Correct answer: Investigating the underlying causes of complaints to identify systemic issues and prevent recurrence
Root cause analysis involves examining complaints to identify patterns and systemic issues within the firm. The FCA expects firms to use complaints data to address underlying problems and prevent similar complaints arising.
Question 3: What complaints data must firms report to the FCA?
- No complaints data needs to be reported
- The number and nature of complaints received and how they were resolved, reported semi-annually (Correct answer)
- Only complaints that resulted in compensation
- Only complaints referred to the FOS
Correct answer: The number and nature of complaints received and how they were resolved, reported semi-annually
Firms must submit complaints data to the FCA twice a year, detailing the number of complaints received, the products and causes involved, and how they were resolved, including any redress paid.
Question 4: What is the 'summary resolution communication'?
- A court summary of a legal case
- A communication sent when a complaint is resolved by the next business day, informing the complainant about the FOS (Correct answer)
- A summary of all complaints received during the year
- A communication to the FCA summarising complaint trends
Correct answer: A communication sent when a complaint is resolved by the next business day, informing the complainant about the FOS
When a complaint is resolved to the complainant's satisfaction by the close of the next business day, firms can send a summary resolution communication instead of a full final response, but must still inform about FOS rights.
Question 5: Can a firm charge a fee for handling complaints?
- Yes, firms can charge a reasonable fee
- No, complaints handling must be free of charge (Correct answer)
- Yes, but only for complex complaints
- Yes, but only if the complaint is found to be unjustified
Correct answer: No, complaints handling must be free of charge
Under FCA rules, firms must not charge complainants for the investigation or resolution of complaints. Complaints handling must be free of charge to ensure it is accessible to all customers.
Question 6: What is the FCA's expectation regarding complaints procedures and vulnerable customers?
- Vulnerable customers should use the standard complaints procedure only
- Firms should have flexible procedures that accommodate the needs of vulnerable customers (Correct answer)
- Vulnerable customers must have a representative handle their complaint
- Firms have no additional obligations for vulnerable complainants
Correct answer: Firms should have flexible procedures that accommodate the needs of vulnerable customers
The FCA expects firms to ensure their complaints procedures are flexible and accommodate the needs of vulnerable customers, including making reasonable adjustments and providing additional support where needed.
CII R01 Complaints Handling 2
What must firms do when they receive a complaint?