Chapter 5 - Complaints and Redress Flashcards
Firms must have written procedures in place for complaints which are in line with which of the following criteria?
Where complaints are in writing or oral, whether they are justifiable or not.
These procedures should be in place for complaints regardless of whether the complaint is oral or in writing, and whether the complaint is justified or not.
What is the MAXIMUM compensation that the Financial Services Compensation Scheme (FSCS) can currently pay to an eligible person following the failure of a credit union?
£85,000
The FSCS compensation limit for credit unions is £85,000 per eligible person per firm.
Under the Financial Services Act 2012, who may make a super-complaint?
Certain consumer bodies.
Under the Financial Services Act 2012, certain consumer bodies are allowed to make super-complaints where a feature of the UK financial services market is, or appears to be, significantly damaging to the interests of consumers. The FOS and firms themselves are allowed to make mass-detriment references.
If a customer has an unresolved complaint against an authorised firm, who will deal with it?
Financial Ombudsman Service
The Financial Ombudsman Service (FOS) is used by customers where the firm has been unable to resolve a complaint to their satisfaction.
The Financial Ombudsman Service is:
An independent body.
Under the provisions of FSMA, the FCA has the power to make rules relating to the handling of complaints, and an independent body, the Financial Ombudsman Service, has been established to administer and operate a dispute resolution scheme.
If a policyholder complains to the Financial Ombudsman Service (FOS) about an omission by a firm which took place in November 2019, what is the MAXIMUM compensation the FOS can award?
£350,000
The amount of compensation the FOS can award to a complainant for complaints about firms’ acts or omissions is £350,000 if the act took place on or after 1 April 2019, or £160,000 if it took place before 1 April 2019.
What, if any, is the MAXIMUM amount of compensation payable under the Financial Services Compensation Scheme (FSCS) for compulsory third-party motor insurance claims?
There is no maximum.
Insurance protection provided by the Financial Services Compensation Scheme (FSCS) is 90% of the claim with no upper limit – this limit is for insurance business, and general insurance advice and arranging. Compulsory insurance, of which third-party motor insurance is one type, is protected in full.
If a firm receives a complex complaint that will take several months to resolve, a holding response must be issued within what MAXIMUM period?
8 weeks
After receiving a complaint, a firm must send a written response to the complainant within eight weeks. This will either be a final response or a holding response.
As part of the requirements for business partnerships employing fewer than ten persons, to be classed as ‘eligible complainants’ for complaints handling purposes, their annual turnover must be below what threshold?
€2 million
The internal complaints procedures are only required for ‘eligible complainants’ which embraces, inter alia, businesses with a group annual turnover of less than €2 million at the time the complaint is raised.
