Complaints Handling Flashcards

What is the role of the firm's 'complaints officer' or 'complaints function'?

Answer: To oversee the effective and fair handling of complaints and ensure compliance with DISP requirements

The complaints function is responsible for ensuring complaints are handled fairly and effectively in accordance with FCA rules, identifying root causes, and reporting to senior management and the FCA as required.

What is 'alternative dispute resolution' (ADR) in financial services?

Answer: Methods of resolving disputes outside the courts, primarily through the FOS in financial services

ADR refers to methods of resolving disputes outside the traditional court system. In UK financial services, the FOS is the primary ADR provider, offering a free and accessible way for consumers to resolve disputes with firms.

Under the Consumer Duty, how should complaints data be used by firms?

Answer: As a key source of evidence for monitoring and assessing whether they are delivering good outcomes for customers

Under the Consumer Duty, firms should use complaints data as part of their evidence base for monitoring whether they are delivering good outcomes across the four outcome areas: products/services, price/value, consumer understanding, and consumer support.

What is the FOS's 'ombudsman decision' process?

Answer: An adjudicator first makes an assessment, and if either party disagrees, an ombudsman makes a final decision

The FOS process typically involves an adjudicator making an initial assessment. If either party disagrees, the case can be referred to an ombudsman who will issue a final decision after reviewing all evidence.

What is 'distressed debt' and how does it relate to complaints handling?

Answer: Debt involving customers in financial difficulty, requiring firms to handle complaints with particular sensitivity and to consider forbearance

When handling complaints from customers in financial difficulty or with distressed debt, firms must show particular sensitivity and consider whether forbearance or alternative arrangements might be appropriate, in line with CONC requirements.

What happens if a firm fails to comply with FCA complaints handling rules?

Answer: The FCA can take supervisory or enforcement action, including fines and public censure

Failure to comply with complaints handling rules can result in the FCA taking supervisory action (such as requiring improvements) or enforcement action (such as fines, public censure, or restrictions on the firm's activities).