5B.5. Block 5: Redress

Question 1

What does Block 5: Redress of the FCA handbook contain?

Answer 1

The processes for handling complaints and dealing with compensation.

Question 2

What is the DISP sourcebook or manual?

Answer 2

Complaints

Question 3

What does the DISP sourcebook or manual include?

Answer 3

The procedures firms need to have in place to handle any complaints made by customers and the rules that apply for the FOS.

Question 4

What is the CONRED sourcebook or manual?

Answer 4

Redress

Question 5

What does the CONRED sourcebook or manual include?

Answer 5

The requirements for all firms involved in Arch Cru funds.

(Some 20,000 investors were recommended to invest in the low-risk (cautious managed) funds by their financial adviser. These funds were anything but low-risk, being invested in a mix of hedge funds, private equity, forestry, wine and creaky Greek shipping. Investors have been waiting since 2009 for full redress.

Question 6

What is the COMP sourcebook or manual?

Answer 6

Compensation

Question 7

What does the COMP sourcebook or manual include?

Answer 7

Information about the FSCS.

Question 8

The FCA appointed another body: The Complaints Commissioner. What is their role?

Answer 8

To independently review complaints about the actions or inactions of the UK’s current financial services regulators, the FCA, the PRA and the BoE.

Question 9

What other complaints is the commissioner also able to consider?

Answer 9

Complaints about the UK’s previous financial services regulator, the FSA.

Question 10

Where do complaints have to be made first to?

Answer 10

Always be made to the body itself first.

Question 11

What is the complaint process?

Answer 11

A complaint must usually be referred to the Commissioner within 3 months of the date of the regulator’s decision letter. Although the commissioner can consider complaints received more than 3 months after the decision, it will expect the complainant to provide a clear explanation of why the complaint was sent late.

Question 12

When will the Office of the Complaints Commissioner acknowledge complaints?

Answer 12

Within 3 working days.

Question 13

When will they aim to deal with the complaint?

Answer 13

Within 12 weeks, but will keep the complainant updated every 4 weeks.

Question 14

What 5 options are open to the Complaints Commissioner once investigating a complaint?

Answer 14

1. Exclusions
2. Not investigating
3. Deferral
4. Not upholding a complaint
5. Upholding a complaint

Question 15

What do exclusions mean?

Answer 15

Certain complaints do not come under the remit of the Complaints Commissioner, so need to be handled by the FOS.

Question 16

What does ‘not investigating’ involve?

Answer 16

The complaint again should be handled elsewhere, or there is ongoing continuing regulator action going on.

Question 17

What does ‘deferral’ mean?

Answer 17

Until any continued regulated action comes to a conclusion.

Question 18

What does ‘not upholding a complaint’ involve?

Answer 18

The rationale for this decision will be fully explained to the complainant.

Question 19

What does ‘upholding a complaint’ involve?

Answer 19

If a complaint is upheld, the Commissioner can order a number of resultant actions which include:

• A regulatory apology.
• Appropriate steps to remedy the error.
• A change to regulator procedures.
• A compensation payment to the claimant. This is ultimately the FCA’s decision as to whether any payment is made.