CII R01 Complaints Handling 4

Question 1

What is 'redress' in the context of complaints?

Accepted Answer

Compensation or remedial action to put the customer back in the position they would have been in without the firm's error

Answer

Redress aims to put the customer back in the position they would have been in had the error or failing not occurred. This may include financial compensation, correcting an error, or other remedial action as appropriate.

Question 2

What is a 'past business review' in relation to complaints?

Accepted Answer

A review of past sales or advice to identify and remediate cases where customers may have been harmed

Answer

A past business review involves a firm proactively reviewing its past sales, advice, or other activities to identify cases where customers may have been treated unfairly or suffered loss, and providing appropriate redress.

Question 3

What is the difference between 'upheld' and 'rejected' complaints?

Accepted Answer

Upheld means the firm found in the complainant's favour; rejected means the firm did not accept the complaint

Answer

An upheld complaint is one where the firm has found in favour of the complainant and typically offers redress. A rejected complaint is one where the firm has not accepted the complaint after investigation.

Question 4

What is the FCA's position on firms using 'non-disclosure agreements' (NDAs) in complaint settlements?

Accepted Answer

The FCA has stated that NDAs should not be used to prevent consumers from speaking to the FCA, FOS, or other regulators

Answer

The FCA has made clear that firms should not use NDAs or confidentiality clauses to prevent consumers from contacting or cooperating with the FCA, FOS, or other regulators. Such clauses should not be used to silence whistleblowers or complainants.

Question 5

What is 'remediation' in the context of widespread complaints about a product?

Accepted Answer

A proactive programme to identify and compensate all affected customers, not just those who have complained

Answer

Remediation involves a firm proactively identifying all customers affected by an issue and providing appropriate compensation or correction, not just responding to individual complaints. The FCA often requires remediation for widespread failings.

CII R01 Practice Test

CII R01 Practice Test

CII R01 Complaints Handling 4