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

The FOS was established under the Financial Services and Markets Act 2000 (FSMA) as the statutory scheme for resolving disputes between consumers and authorized financial firms.

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

Under DISP 3.6.1, the FOS determines complaints on the basis of what is fair and reasonable in all the circumstances, which may go beyond strict legal rights.

Question 3

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

Accepted Answer

£375,000

Answer

The FOS compulsory jurisdiction award limit was increased to £375,000 for complaints referred on or after 1 April 2020, reflecting inflation and the need to provide meaningful redress.

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

Firms must have procedures to acknowledge, investigate, and respond to complaints fairly and promptly, adhering to DISP timeframes and notification requirements.

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

Redress refers to the remedy provided to a complainant — typically financial compensation — intended to put them back in the position they would have been in had the firm not acted improperly.

FCA - Financial Conduct Authority Practice Test

FCA - Financial Conduct Authority Practice Test

FCA Complaints Handling and Redress 2