FCA Complaints Handling and Redress 2

Question 1

The Financial Ombudsman Service was established under which legislation?

Accepted Answer

Financial Services and Markets Act 2000 (FSMA)

Answer

Financial Services Act 1986

Answer

Consumer Credit Act 1974

Answer

Financial Services Act 2012

Question 2

On what basis does the Financial Ombudsman Service decide complaints?

Accepted Answer

What is fair and reasonable in all the circumstances of the case

Answer

Strictly on legal principles as applied by a court

Answer

Based solely on contractual terms between the parties

Answer

Based on industry best practice guidelines only

Question 3

What is the FOS award limit for complaints referred on or after 1 April 2020?

Accepted Answer

£375,000

Answer

£150,000

Answer

£350,000

Answer

£500,000

Question 4

Under DISP, what must a firm do upon receiving a complaint from an eligible complainant?

Accepted Answer

Acknowledge, investigate thoroughly, and respond appropriately within required timeframes

Answer

Immediately refer the complainant to the FOS without investigating

Answer

Offer compensation within 24 hours to avoid regulatory scrutiny

Answer

Only handle complaints submitted in writing via registered post

Question 5

In the context of FCA complaints handling, what does 'redress' mean?

Accepted Answer

Compensation or remedial action to restore the complainant to the position they should have been in

Answer

A formal regulatory fine imposed by the FCA on a firm

Answer

A warning notice sent to a firm prior to enforcement action

Answer

A requirement to publish complaints data on the firm's website

Question 6

Under DISP 1.10, firms are required to report complaints data to the FCA. How frequently must this reporting occur?

Accepted Answer

Every 6 months (bi-annually)

Answer

Monthly

Answer

Quarterly

Answer

Annually

Question 7

Which of the following statements about the FOS compulsory jurisdiction is correct?

Accepted Answer

All FCA-authorized firms are automatically subject to the FOS compulsory jurisdiction

Answer

Firms can opt out of the compulsory jurisdiction if they have their own arbitration scheme

Answer

The compulsory jurisdiction only applies to deposit-taking institutions

Answer

Firms must apply separately to join the FOS compulsory jurisdiction