FCA Complaints Handling and Redress 3

Question 1

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

Accepted Answer

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

Answer

To handle unresolved complaints when the FOS is overloaded

Answer

To fund the FCA's enforcement activities against failed firms

Answer

To provide voluntary compensation above FOS award limits

Question 2

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

Accepted Answer

£85,000 per person

Answer

£50,000 per person

Answer

£75,000 per person

Answer

£100,000 per person

Question 3

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

Accepted Answer

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

Answer

Exclusively to calculate the annual FSCS levy on firms

Answer

Only to produce consumer-facing publications about firm performance

Answer

To determine whether a firm's authorization should be renewed

Question 4

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

Accepted Answer

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

Answer

The Consumer Duty fully replaces DISP and its complaints requirements

Answer

The Consumer Duty only applies to new product sales, not post-sale complaints

Answer

Consumer Duty requires all complaints to be resolved within 4 weeks rather than 8

Question 5

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

Accepted Answer

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

Answer

The complaint is automatically upheld in the complainant's favor

Answer

The FCA automatically revokes the firm's authorization

Answer

The firm must pay a fixed statutory penalty of £5,000

Question 6

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

Accepted Answer

Complaints relating to activities of unauthorized firms

Answer

Complaints about mortgage endowment products sold before 2001

Answer

Complaints about general insurance claims handling

Answer

Complaints about credit card billing disputes

Question 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?

Accepted Answer

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

Answer

The Chief Executive Officer

Answer

The Head of Marketing

Answer

An independent external auditor appointed annually