FCA Complaints Handling and Redress 1 — Questions and Answers
Question 1: Which FCA sourcebook primarily governs complaints handling requirements for authorized firms?
- COBS (Conduct of Business Sourcebook)
- DISP (Dispute Resolution: Complaints) (Correct answer)
- SYSC (Senior Management Arrangements)
- SUP (Supervision)
Correct answer: DISP (Dispute Resolution: Complaints)
DISP is the dedicated FCA sourcebook setting out rules and guidance on how firms must handle complaints from eligible complainants.
Question 2: Under DISP, within how many business days must a firm issue a 'summary resolution communication' if a complaint is resolved to the complainant's satisfaction by close of that period?
- 1 business day
- 3 business days (Correct answer)
- 5 business days
- 7 business days
Correct answer: 3 business days
DISP 1.5.4 allows firms to send a summary resolution communication within 3 business days for complaints resolved to the customer's satisfaction, instead of a full final response.
Question 3: What is the maximum time a firm has under DISP to send a final response to an eligible complainant?
- 4 weeks
- 6 weeks
- 8 weeks (Correct answer)
- 12 weeks
Correct answer: 8 weeks
Under DISP 1.6.2, firms must send a final response to eligible complainants within 8 weeks of receiving the complaint.
Question 4: Which of the following is NOT classified as an 'eligible complainant' under DISP?
- A private individual
- A micro-enterprise with fewer than 10 employees and annual turnover under €2m
- A large listed corporation with 500+ employees (Correct answer)
- A charity with annual income under £6.5 million
Correct answer: A large listed corporation with 500+ employees
DISP 2.7 defines eligible complainants as private individuals, micro-enterprises, small businesses, charities under £6.5m income, and eligible trusts — large corporations are excluded.
Question 5: To which body can an eligible complainant refer an unresolved complaint if they are not satisfied with the firm's final response?
- The FCA directly
- The Financial Services Compensation Scheme (FSCS)
- The Financial Ombudsman Service (FOS) (Correct answer)
- The Prudential Regulation Authority (PRA)
Correct answer: The Financial Ombudsman Service (FOS)
The Financial Ombudsman Service (FOS) is the independent body established to resolve disputes between financial firms and eligible complainants when internal resolution has failed.
Question 6: How long does an eligible complainant have to refer their complaint to the Financial Ombudsman Service after receiving a firm's final response?
- 3 months
- 6 months (Correct answer)
- 12 months
- 18 months
Correct answer: 6 months
Under DISP 2.8.2, eligible complainants have 6 months from the date of the firm's final response to refer the complaint to the FOS.
Question 7: Under DISP 1.6.4, what must a firm's final response letter include alongside its decision?
- Only the firm's decision with no further information required
- The firm's decision, reasons, and information about the complainant's right to refer to the FOS (Correct answer)
- A mandatory compensation offer and FOS contact details only
- A signed declaration from the firm's Senior Manager
Correct answer: The firm's decision, reasons, and information about the complainant's right to refer to the FOS
DISP 1.6.4 requires that a final response explains the firm's decision, provides reasons, and informs the complainant of their right to refer to the FOS within 6 months.
FCA Complaints Handling and Redress 1
Which FCA sourcebook primarily governs complaints handling requirements for authorized firms?