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Complaints Handling and Redress Flashcards

7 cards from real FCA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Complaints Handling and Redress flashcards as text

  1. What is the primary purpose of the Financial Services Compensation Scheme (FSCS)?

    Answer: To pay compensation to consumers when authorized firms have failed and cannot meet claims

    The FSCS is the UK's statutory fund of last resort for customers of failed authorized financial services firms, paying compensation when the firm itself is unable to do so.

  2. What is the FSCS compensation limit for protected deposits held with a single UK-authorized deposit-taking institution?

    Answer: £85,000 per person

    The FSCS protects up to £85,000 per person per authorized firm for eligible deposits, with temporary higher protection (up to £1m) available for certain life events such as house purchases.

  3. How does the FCA use complaints data submitted by firms under DISP 1.10?

    Answer: As supervisory intelligence to identify conduct issues, poor practices, and firms requiring closer scrutiny

    The FCA analyzes complaints data as a key supervisory tool to spot trends, identify sectors or individual firms with potential conduct problems, and inform its risk-based supervision approach.

  4. Under the Consumer Duty (effective July 2023), how does the FCA's expectation on complaints handling relate to broader firm conduct?

    Answer: Effective complaints handling is integral to delivering good outcomes, reinforcing rather than replacing DISP obligations

    The Consumer Duty requires firms to deliver good outcomes throughout the customer lifecycle; complaints handling is a key indicator of whether firms are meeting this standard, and DISP rules continue to apply alongside it.

  5. What happens if a firm fails to send a final response within the 8-week DISP deadline?

    Answer: The complainant becomes entitled to refer the complaint to the FOS even without a final response

    Under DISP 1.6.3, if a firm has not resolved the complaint within 8 weeks, it must write to the complainant explaining the delay and informing them of their right to refer to the FOS immediately.

  6. Which type of complaint is specifically EXCLUDED from the FOS compulsory jurisdiction?

    Answer: Complaints relating to activities of unauthorized firms

    The FOS compulsory jurisdiction only covers complaints against FCA-authorized firms; complaints about unauthorized firms fall outside its remit and must be directed to the FCA or Action Fraud.

  7. Under DISP, firms are required to appoint a specific individual to be responsible for the firm's compliance with complaints handling rules. What is this role typically associated with?

    Answer: A Senior Manager with responsibility for complaints handling under the Senior Managers and Certification Regime

    Under DISP 1.3.1 and the Senior Managers and Certification Regime, a firm must ensure appropriate senior management accountability for complaints handling, with a Senior Manager taking ownership of compliance.