How to handle an FCA Regulated Complaint - part one

The Financial Conduct Authority has issued detailed rules on how businesses should handle complaints and these may be found in the DISP section of the FCA handbook.

The DISP rules apply to all FCA Regulated businesses and include details of the Financial Ombudsman Service (FOS).

Complaints come in all shapes and sizes - and Firms need to be able to identify and respond promptly - staff need to be aware of their responsibilities and the correct escalation process within the Firm.

The FCA glossary defines a complaint as :

"any oral or written expression of dissatisfaction, whether justified or not, from, or on behalf of, a person about the provision of, or failure to provide, a financial service or a redress determination, which :

• alleges that the complainant has suffered (or may suffer) financial loss, material distress or material inconvenience; and

• relates to an activity of that respondent, or any other respondent with whom that respondent has some connection in marketing or providing financial services or products, which comes under the jurisdiction of the Financial Ombudsman Scheme."

All regulated businesses are required to have an effective complaints handling procedure  - and staff trained appropriately. The Procedure will need to take into account

• The time limits for dealing with a complaint
• The review process including "independence" of review where possible
• For eligible complainants - details of their right to refer the matter to the Financial Ombudsman Service.

Details of the Firms procedure should be published and made available to complainants - most Firms will include this in their Terms of Business Letters / Initial Disclosure Documents at the initial point of contact.

A further copy of the complaints procedure should also be made available when the complaint is acknowledged.

So you have received a complaint what to do next I hear you ask?

Collect the full facts of the case - is it "our" complaint?

If it is our complaint then are you required to notify your PI Insurer immediately?

Is the matter something that can be resolved quickly?  Where the "issue" can be resolved within three working days then a "Summary Response Communication" needs to be issued and details of the FOS scheme provided.  For Lloyds of London Insurance Complaints then details of the Lloyds scheme need to be provided.

Where the complaint relates to a Third Party then the case should be sent on to the Third Party and a response sent back to the Complainant - explaining that the matter has been referred to [name] at [Firm].  Records should be kept of the complaint - and included with other data as part of a root cause analysis review.




Compliant Solutions Limited - experts in helping Financial Services Businesses deal with the business challenges of Financial Conduct Authority Compliance - for help contact ian@compliantsolutions.co.uk