Complaints Handling Flashcards

What is the FOS's jurisdiction based on?

Answer: Whether the complaint involves a regulated activity by an FCA-authorised firm and an eligible complainant

The FOS can consider complaints where the activity is within its jurisdiction (generally regulated activities), the firm is covered (FCA-authorised or otherwise within scope), and the complainant is eligible.

How does the FOS determine the outcome of a complaint?

Answer: It determines what is fair and reasonable in all the circumstances of the case

The FOS determines complaints by reference to what is fair and reasonable in all the circumstances, taking into account relevant law, regulations, guidance, codes of practice, and good industry practice.

What is a 'final decision' from the FOS?

Answer: A binding decision issued by an ombudsman after investigation, which the complainant can accept or reject

A final decision is issued by an ombudsman and is binding on the firm if accepted by the complainant. If the complainant rejects it, they can still pursue the matter through the courts.

What is the 'eight-week rule' in complaints handling?

Answer: Firms must issue a final response within 8 weeks, or explain the delay and inform about FOS referral rights

If a firm cannot resolve a complaint within 8 weeks of receipt, it must send a final response or a letter explaining why it needs more time and informing the complainant of their right to refer to the FOS.

What records must firms keep regarding complaints?

Answer: Records of each complaint received, the measures taken to resolve it, and whether it was resolved by close of the next business day

Firms must maintain records of each complaint, including the subject matter, any correspondence, and the measures taken for resolution. Records must be retained for at least three years (five years for MiFID complaints).

How long must firms retain complaint records?

Answer: 3 years from the date of receipt of the complaint (5 years for MiFID complaints)

Under DISP, firms must retain complaint records for at least 3 years from the date of receipt. For complaints relating to MiFID business, records must be kept for at least 5 years.