Complaints Handling Flashcards

What is the FCA's requirement regarding complaints management information (MI)?

Answer: Firms must produce regular MI on complaints to enable senior management to identify problems and take corrective action

The FCA expects firms to produce regular complaints MI that enables senior management and the board to identify trends, systemic issues, and areas for improvement. This supports effective oversight and root cause analysis.

What is 'time-barring' in the context of FOS complaints?

Answer: The FOS may not consider a complaint if it is brought more than six years after the event (or three years from awareness), subject to exceptions

The FOS time limits mirror the Limitation Act approach: generally six years from the event, or three years from when the complainant knew (or should have known) they had cause to complain, whichever is later.

What is the FCA's view on using complaints as a competitive advantage?

Answer: Firms should view effective complaints handling as an opportunity to improve services and build customer loyalty

The FCA encourages firms to view complaints as valuable feedback. Effective complaints handling can improve products and services, demonstrate commitment to customers, and build trust and loyalty.

What must firms do if they identify that a complaint reveals a widespread or systemic problem?

Answer: Take proactive steps to identify and remedy the issue for all affected customers, not just those who complained

When a complaint reveals a wider problem, firms are expected to investigate the full extent of the issue and take appropriate action for all affected customers, including those who have not complained. This may involve contacting customers proactively.

What is the FCA's position on firms outsourcing their complaints handling?

Answer: Firms can outsource complaints handling but remain responsible for compliance with FCA rules

Firms can outsource their complaints handling function, but they retain full responsibility for ensuring that complaints are handled in compliance with FCA rules. The firm remains accountable for the outsourced function's performance.

What is the significance of the FCA publishing complaints data?

Answer: It promotes transparency and allows consumers to compare firms' complaints records, encouraging better complaint handling

The FCA publishes aggregate complaints data to promote transparency, enabling consumers and the market to see how firms perform in handling complaints. This public accountability incentivises firms to improve their complaint handling.