CII R01 Complaints Handling 1 — Questions and Answers
Question 1: Under FCA rules, what constitutes a 'complaint'?
- Only a formal written letter of dissatisfaction
- Any oral or written expression of dissatisfaction about a firm's provision of or failure to provide a financial service (Correct answer)
- Only concerns raised through the firm's official complaints form
- Only issues where the customer has suffered a financial loss
Correct answer: Any oral or written expression of dissatisfaction about a firm's provision of or failure to provide a financial service
The FCA defines a complaint broadly as any oral or written expression of dissatisfaction, whether justified or not, from or on behalf of an eligible complainant, about the firm's provision of, or failure to provide, a financial service or redress determination.
Question 2: What is the FCA's time limit for resolving complaints?
- 7 calendar days
- 3 business days for straightforward complaints or 8 weeks for all complaints (Correct answer)
- 30 calendar days
- There is no time limit
Correct answer: 3 business days for straightforward complaints or 8 weeks for all complaints
Firms must try to resolve complaints by the end of the next business day (for straightforward complaints) or within 8 weeks. If a complaint cannot be resolved within 8 weeks, the firm must send a final response or a written explanation of the delay.
Question 3: What must a firm's 'final response' to a complaint include?
- Only an apology
- The firm's decision, the reasons for it, and information about the right to refer to the Financial Ombudsman Service (Correct answer)
- Only the amount of compensation offered
- A summary of the firm's complaints policy
Correct answer: The firm's decision, the reasons for it, and information about the right to refer to the Financial Ombudsman Service
A final response must clearly set out the firm's decision and the reasons for it, offer redress or remedial action if appropriate, and inform the complainant of their right to refer the matter to the FOS within six months.
Question 4: How long does a complainant have to refer a complaint to the Financial Ombudsman Service after receiving a final response?
- 30 days
- 3 months
- 6 months (Correct answer)
- 12 months
Correct answer: 6 months
A complainant has six months from the date of the final response to refer their complaint to the FOS. After this period, the FOS may not be able to consider the complaint.
Question 5: What is the FCA's DISP sourcebook?
- A sourcebook on dispute resolution between firms
- The Dispute Resolution: Complaints sourcebook setting out rules for handling complaints (Correct answer)
- A sourcebook on data protection and information security
- A guidebook for FCA disciplinary proceedings
Correct answer: The Dispute Resolution: Complaints sourcebook setting out rules for handling complaints
DISP (Dispute Resolution: Complaints) is the FCA sourcebook that sets out the rules and guidance for how firms should handle complaints, including the procedures, timescales, and reporting requirements.
Question 6: Who is an 'eligible complainant' under FCA rules?
- Only individual retail customers
- Consumers, micro-enterprises, small businesses, charities, and trustees of certain trusts who are entitled to have complaints considered (Correct answer)
- Any person who contacts the firm
- Only customers who have suffered a financial loss
Correct answer: Consumers, micro-enterprises, small businesses, charities, and trustees of certain trusts who are entitled to have complaints considered
Eligible complainants include consumers (individuals acting outside their trade/profession), micro-enterprises, small businesses (under 50 employees with turnover/balance sheet under £6.5m), charities with annual income under £6.5m, and trustees of trusts with net asset value under £5m.
CII R01 Complaints Handling 1
Under FCA rules, what constitutes a 'complaint'?