Complaints Handling Flashcards

What must firms do when they receive a complaint?

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.

What is 'root cause analysis' in the context of complaints handling?

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.

What complaints data must firms report to the FCA?

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.

What is the 'summary resolution communication'?

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.

Can a firm charge a fee for handling complaints?

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.

What is the FCA's expectation regarding complaints procedures and vulnerable customers?

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.