Complaints Handling Flashcards

Under FCA rules, what constitutes a 'complaint'?

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.

What is the FCA's time limit for resolving complaints?

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.

What must a firm's 'final response' to a complaint include?

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.

How long does a complainant have to refer a complaint to the Financial Ombudsman Service after receiving a final response?

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.

What is the FCA's DISP sourcebook?

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.

Who is an 'eligible complainant' under FCA rules?

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.