April 2018
By Mark Greenwood, group regulatory policy manager at SimplyBiz Group
We all hope we never receive complaints from our clients, but as a reminder, we thought it would be useful to recap the FCA complaints recording and reporting rules to ensure that if you do, you have a suitable process in place.
Complaints handled within three business days
The FCA’s rules allow firms to handle complaints less formally, without sending a final response letter, if a decision is made within three business days after receipt of the complaint. The rationale behind this is that it allows firms more time to handle less complex complaints and avoid them being carried over into the more formal, eight-week period. When a complaint is resolved to the complainant’s satisfaction within this time period, you are required to send a simple template message – a summary resolution communication, rather than a final response. This is a written acknowledgement to the complainant, telling them about their right to refer their complaint to the Financial Ombudsman Service (FOS).
Raising consumer awareness of the FOS
The summary resolution communication raises awareness of the client’s right to make use of the FOS at the point when it is most required, during the course of the complaint. This is designed to rebalance the relationship between complainant and respondent, removing the information asymmetry where one party knows more than the other and so is in a stronger negotiating position.
The basic content of the summary resolution communication is prescribed by the FCA’s rules, but firms may add content if they wish. For example, in addition to setting out the possibility of complaining to the FOS, the communication may suggest that the complainant gets back in touch with the firm to consider the issue further if their concerns have not been fully addressed. However, a summary resolution communication should not be sent unless the firm believes they have resolved the complaint to the complainant’s satisfaction.
It should be noted that where a summary resolution communication is issued and the client gets back in touch, the complainant’s right to refer the complaint to the FOS is unaffected, and that the key message about the availability of the FOS should not be undermined. Where a complaint is considered further on this basis, the eight-week deadline for a final response letter continues to apply (running from the date the complaint was originally sent).
Complaints data
As you will no doubt be aware, the FCA collects complaints data twice a year via the Gabriel electronic reporting system that asks firms to provide data on all complaints. This allows it to assess whether the provisions in place help ensure the satisfactory outcome for the client, and that this outcome is being achieved.
FIBA members have access to an extensive compliance hub which holds all the relevant information required to ensure your complaints process is robust. To discuss this further, interested parties should speak directly with the membership team on 0203 0338 899 or visit the FIBA website: www.fiba.org.uk