Complaint Handling Test Papers and Answer Sheets | Using the Assessment and Financial Ombudsman Service FOS | Template for FCA Applications and Authorised Firms

1 Test Paper Overview

Testing, assessing and training employees in the regulatory compliance rules and standards is an essential business practice to ensure compliance, evidence competency and support your staff. We have designed a range of exclusive compliance assessment quiz and answer documents, with a view to assisting regulated firms in the compliance expectations.

1.1 Assessment Quiz & Answers

Our ready-to-use question and answer assessments come with beginner, intermediate and advanced style questions on the specific compliance areas and through detailed and expertly developed answers sheets, also aim to teach as well as test. The assessments are unique in that they do not just provide yes/no answers to the questions. Our compliance experts have provided detailed, relevant and compliant answers to each question so that gaps and understanding can be filed, and staff supported.

Assessments should be a continual part of any organisation and delivered as part of induction programmes, after training and on a rolling basis as part of a standard compliance regime. These assessments allow you to evidence your compliance to the Training and Competency requirements set by regulators and enable the identification of misunderstood areas, before they become a problem.

1.2 Using the Assessment

You are free to edit and use the document however suits your business type and needs, however we would suggest printing the quiz for hard copy use and then using the answer paper to mark the assessment and discuss the answers with the employee where gaps have been identified. You should also add a copy of the assessment and any marking/evaluation logs to the employees training file for future reference and compliance evidence.

1.3 Marking Sheet

Each of the questions come with a marking guide which can be used by the employee to know how many points/answers should be given, and for the marker to score the answer correctly. At the end of the document, you will find a marking sheet to make scoring the tests easier.

2 Complaint Handling Test Paper 1

You have 30 minutes to complete the quiz on Complaint Handling and Disputes. This quiz has been designed to test your knowledge and understanding in this compliance area. Please make sure that you read each question carefully – the marks available for each question are noted on the bottom right.

1) Whose acronym is FOS?

a. Finance Office Scheme                                                   ___
b. Financial Ombudsman Service                                       ___
c. Financial Oversight Service                                            ___
d. Finance Ombudsman Scheme                                       ___

                                                                                       (1 mark)

 

2) Which Sourcebook under the Redress section of the FCA Handbook, defines the rules and regulations for complaint handling and disputes?

______________________________________________________

                                                                                       (2 marks)

3) You must publish a summary of your Complaints Handling procedure for customers to access?

 a. True                                                                               ___
b. False                                                                              ___

                                                                                       (1 mark)

4) What is the 8-week rule?

________________________________________________________

________________________________________________________

________________________________________________________

                                                                                       (3 marks)

5) A Summary Response Communication letter is?

a. A final response letter sent by a firm to a complainant once the complaint has been resolved and closed.
b. A letter sent to a complainant if their complaint is resolved by the close of business on the third working day after the complaint was received.
c. A summary of the complaint issues which is sent to the complainant before the formal complaint investigation begins.

                                                                                       (1 mark)

6) A Final Response letter must be in writing?

 a. True                                                                               ___
b. False                                                                              ___

                                                                                       (1 mark)

7) Per DISP 1.6, on initial receipt of a complaint, a firm must: – (fill in the blanks)

“Send the complainant a ________ written _______________, providing early reassurance that it has received the complaint and is dealing with it.”

                                                                                       (2 marks)

 8) Which of the below must be included in a Final Response letter to the complainant?

(You can choose multiple answers)

a. Be open in acknowledging any mistakes that may have happened  ___
b. A settlement offer, regardless of complaint outcome  ___
c. Copies of all previous communications relating to the complaint  ___
d. Give a link to the FOS website  ___
e. Provide the complaint investigators name and contact details  ___

                                                                                       (2 marks)

9) All employees should be able to recognise a complaint and know how to deal with it. List 3 actions that you should do if you receive a complaint from a customer?

________________________________________________________

________________________________________________________

________________________________________________________

                                                                                       (3 marks)

10) Complaints are only formal if they are received: –

a. In person                                                                         ___
b. In writing                                                                         ___
c. By email                                                                          ___
d. Via telephone                                                                 ___
e. Any of the above c                                                         ___

                                                                                       (1 mark)

You have reached the end of test paper 1

3 Complaint Handling Test Paper 2

You have 30 minutes to complete the quiz on Complaint Handling and Disputes. This quiz has been designed to test your knowledge and understanding in this compliance area. Please make sure that you read each question carefully – the marks available for each question are noted on the bottom right.

1) After a firm’s Final Response has been received, a customer has how long to refer their complaint to the Financial Ombudsman Service?

a. 6 years                                                                             ___
b. 6 months                                                                          ___
c. 6 weeks                                                                           ___

                                                                                       (1 mark)

2) A Final Response Letter must contain a mandatory FCA/FOS outcome, of which there are 3, list them below?

________________________________________________________

________________________________________________________

________________________________________________________

                                                                                       (6 marks)

3) The Ombudsman’s Consumer Leaflet must be included with all Final Response letters. A firm can provide a copy of the leaflet or a link to the leaflet content if they wish?

 a. True                                                                               ___
b. False                                                                              ___

                                                                                       (1 mark)

4) Consumers have certain rights with regards to the complaints they may raise to a financial firm. Their ultimate right is? (fill in the blanks)

“You have the right to _______ your complaint to the Financial Ombudsman Service,

______ of charge.”

                                                                                       (2 marks)

5) Does a business have to comply with the Ombudsman’s decision?

a. Yes – If the consumer accepts an Ombudsman’s decision, it is binding on the firm  ___
b. No – The firm must consider the Ombudsman’s decision, but can offer an alternate settlement if they see fit  ___
c. Yes – The consumer and the firm are bound by any decision made by the Ombudsman  ___
d. No – If a business disagrees with the decision made by the Ombudsman’s, it can be reversed by the FCA  ___

                                                                                       (1 mark)

6) Who is the Respondent?

________________________________________________________

                                                                                       (1 mark)

7) In limited circumstances, the Financial Ombudsman Service may look into a complaint before the initial 8-weeks have passed?

 a. True                                                                               ___
b. False                                                                              ___

                                                                                       (1 mark)

8) The Financial Ombudsman Service’s decision is final?

 a. True                                                                               ___
b. False                                                                              ___

                                                                                       (1 mark)

9) The Ombudsman may dismiss a complaint referred to them, without considering its merits if they consider that: –

(Multiple answers accepted)

a. The complaint is frivolous or vexatious
b. There is a conflict of interest between the Complainant and Respondent
c. The Complainant has previously referred another business to the FOS
d. Dealing with such a type of complaint would otherwise seriously impair the effective operation of the Financial Ombudsman Service

                                                                                       (2 marks)

10) A customer tells you that they don’t like the white paper you use for sending them letters and prefer coloured paper and so want to make a complaint – what should you say to them?

________________________________________________________

________________________________________________________

                                                                                       (3 marks)

You have reached the end of test paper 2

4 Complaint Handling Answer Sheet 1

Below are the answers to the first assessment test paper; the correct answer is provided in red underneath each assessment question. We have then provided detailed information about the question and answer which should be relayed to the assessment taker where any gaps have been identified. Use the mark guidance for scoring each answer.

1)Whose acronym is FOS?

 b. Financial Ombudsman Service

The FoS were established in 2001 as a result of the FSMA, to help settle any disputes that arose between financial service providers and consumers. The FoS can investigate and get involved in several financial complaint areas, including: –

• PPI (payment protection insurance)
• banking
• insurance
• mortgages
• credit cards and store cards
• loans and credit
• payday lending and debt collecting
• pensions
• savings and investments
• hire purchase and pawn broking
• money transfer
• financial advice
• stocks, shares, unit trusts and bonds.

The aim of the FoS is to handle complaints between the firm and consumer only when an unsatisfactory resolution has first occurred between the two parties.  The FoS always encourages the consumers to address the complaint with the firm involved in the first instance to see if a satisfactory outcome can be found.

Their overall aim is to help resolve disputes between consumers and businesses in a fair, reasonable, quick and informal manner.

2) Which Sourcebook under the Redress section of the FCA Handbook, defines the rules and regulations for complaint handling and disputes?

MARKER NOTE: Award 1 mark for DISP as answer and 2 marks for the complete answer as below.

DISP – Dispute Resolution: Complaints

This DISP section of the FCA Handbook sets out the rules and guidelines for how complaints are to

be dealt with by firms and the Financial Ombudsman Service (FoS). It contains the relevant provisions from the Financial Services and Markets Act 2000 and any transitional provisions made by the Treasury under this Act. It also includes rules made by the FCA and rules made by the FOS, as well as rules and guidance on how firms should treat customers fairly when dealing with complaints.

 3) You must publish a summary of your Complaints Handling procedure for customers to access?

a. True

You must publish a summary of your complaints handling procedure and ensure that this is readily available and easily accessible to customers. A written format must always be available, such as in a leaflet format; you can also put the summary content via a page on your website.

This summary should include: –

• How you handle and resolve complaints
• Explain that if the complaint is not resolved, the consumer may be entitled to refer it to the ombudsman service

Firms must refer in writing to the availability of this summary at, or immediately after, the point of sale. Where contact or communication with the customer does not involve a sale, the summary should be provided at the first point of contact. Firms must also provide consumers with this information in writing, if they ask for it and automatically supply a copy of the summary when they acknowledge a complaint.

4) What is the 8-week rule?

MARKER NOTE: Award the marks based on the answer provide as it relates to the below information. The answer does not have to mirror the below, however you should ensure that the response clearly answers the question and shows an understanding of the 8-week rule.  

Firms should have procedures in place to ensure that all complaints are resolved at the earliest opportunity, which should help to minimise the possibility of unresolved complaints needing to be referred to the ombudsman service. Under the FOS rules, firms are required to try and resolve any complaint within eight weeks (sometimes referred to as the ‘eight-week rule’), starting from the date a complaint is received anywhere in your business.

5. A Summary Response Communication letter is?

 b. A letter sent to a complainant if their complaint is resolved by the close of business on the third working day after the complaint was received.

Where a firm considers a complaint to be resolved under Redress section DISP 1.5 of the FCA Handbook, the firm must promptly send the complainant a Summary Resolution Communication letter in a written format. A complaint is considered resolved where the complainant has indicated acceptance of a response from the firm, with neither the response nor acceptance having to be in writing.

The Summary Resolution Communication letter must: –

1. Refer to the fact that the complainant has made a complaint and informs the complainant that the firm now considers the complaint to have been resolved
2. Tell the complainant that if they subsequently decide they are dissatisfied with the resolution of the complaint, they may be able to refer the complaint to the Financial Ombudsman Service
3. Indicate whether the firm consents to waive the relevant time limits in DISP 2.8.2R and/or DISP 2.8.7R, by including the appropriate wording set out in DISP 1 Annex 3R
4. Provide the website address of the Financial Ombudsman Service and refer to the availability of further information on that website.

 6) A Final Response letter must be in writing?

 a. True

A firm can also choose to communicate the summary or outcome of a final response letter in another format (phone, email, face-to-face) where previously agreed with the complainant, however the official final response must always be sent in a written letter and a copy retained for reference.

7) Per DISP 1.6, on initial receipt of a complaint, a firm must: – (fill in the blanks)

“Send the complainant a prompt written acknowledgement, providing early reassurance that it has received the complaint and is dealing with it.”

DISP 1.6 of the FCA Handbook sets out the time limit rules as they apply to complaints. It advises firms that they must always seek to keep the complainant informed and on receipt of a complaint, they must: –

Send the complainant a prompt written acknowledgement providing early reassurance that they have received the complaint and are dealing with it

Ensure the complainant is kept informed thereafter of the progress of the measures being taken for the complaint’s resolution

8) Which of the below must be included in a Final Response letter to the complainant?

a. Be open in acknowledging any mistakes that may have happened
d. Give a link to the FOS website

A firm must send the consumer a Final Response no later than eight weeks after they have received the complaint. The final response is the last decision about the complaint and is sent after all investigations and findings have been gathered, documented and reviewed.

The Final Response letter must be in writing and should: –

• Summarise the complaint, setting out the results of your investigation and your final view on the issue the consumer has raised
• Be open in acknowledging any mistakes that may have happened
• Give details of any offer you have made to settle the complaint, with a clear explanation of how you arrived at that offer
• Tell the consumer they have the right to refer the complaint to the ombudsman service within six months of your final response
• Indicate whether you would consent to the FOS looking into the complaint if it is referred to them outside the relevant time limits
• Give a link to the FOS website and include their contact details and a copy of their consumer leaflet ‘Your complaint and the ombudsman’

9) All employees should be able to recognise a complaint and know how to deal with it. List 3 actions that you should do if you receive a complaint from a customer?

 MARKER NOTE: The answers provided will be very subjective and should be marked based on your company’s procedures and the respondent’s awareness of the complaint handling rules and regulations. The below are suggested answers only.        

• Fill out a Complaint Incident Form
• Follow the Complaint Handling Procedures
• Use reporting lines and notify a line manager/Complaints Officer
• Be sensitive and listen to the customer
• Make detailed notes of the complaint
• Encourage the customer to submit the complaint in writing
• Signpost the company’s summary complaint procedures leaflet or website page

10) Complaints are only formal if they are received?

e. Any of the above

Customers are entitled to inform you of their complaint in several ways – for example, by email, phone or in person. It is important that firms prevent obstacles to making a complaint and ensure that they provide their summary complaint procedures in easily accessible formats and locations, such as via a consumer leaflet and on their website.

This is the end of the test 1 answer paper. Where you have identified any gaps or misunderstandings in an assessment, you should use the additional answers provided to teach and support the respondent. You should also scan/save a copy of the completed quiz and marking sheet and complete any assessment/evaluations forms that you use for training and development and record these in the employees training file.

5 Complaint Handling Answer Sheet 2

Below are the answers to the second assessment test paper; the correct answer is provided in red underneath each assessment question. We have then provided detailed information about the question and answer which should be relayed to the assessment taker where any gaps have been identified. Use the mark guidance for scoring each answer.

1) After a firm’s Final Response has been received, a customer has how long to refer their complaint to the Financial Ombudsman Service?

b. 6 months

If a customer is still unhappy with a firm’s final decision regarding a complaint, they can contact the Financial Ombudsman Service (FOS) within six months of the business’s final response, either over the phone or by visiting the FOS website.

2) A Final Response Letter must contain a mandatory FCA/FOS outcome, of which there are 3, list them below?

MARKER NOTE: The answers provided below cover the DISP 1.6.2 outcomes that must be covered in any Final Response Letter. Award the full 6 marks for complete answers, but just award 1 mark for each if the respondent answers accept, offer or reject only.

1. Accepts the complaint and, where appropriate, offers redress or remedial action
2.Offers redress or remedial action without accepting the complaint
3. Rejects the complaint and gives reasons for doing so

3) The Ombudsman’s Consumer Leaflet must be included with all Final Response letters. A firm can provide a copy of the leaflet or a link to the leaflet content if they wish?

b. False

Firms must enclose an original copy of the Ombudsman’s Consumer Leaflet “Your complaint and the Ombudsman” with all Final Response letters or if they run out of time and are not able to

send their Final Response. Firms must not send consumers photocopies of the leaflet or hard-copy printouts of it from the website.

4) Consumers have certain rights with regards to the complaints they may raise to a financial firm. Their ultimate right is? –

“You have the right to refer your complaint to the Financial Ombudsman Service,

free of charge.”

The consumer always has the ultimate right to refer any unresolved complaint to the ombudsman service and firms have a duty of care and regulatory obligation to make the consumer aware of this during all communications.

5) Does a business have to comply with the Ombudsman’s decision?

a. Yes – If the consumer accepts an Ombudsman’s decision, it is binding on the firm

A firm must comply with the Financial Ombudsman Service’s decision in any complaint case and where the consumer accepts the ombudsman’s decision, it is binding on the firm. The rules require

businesses to comply promptly with any ‘money award’ or ‘direction’ that the ombudsman makes and they must also comply promptly with any settlement that they have agreed to make at an earlier

stage of the process.

Although the business is bound by the Ombudsman’s decision if the consumer accepts it within the time limit specified by the ombudsman, the business is not bound if the consumer fails to accept the decision within the timeframe. They are however still free to take court proceedings against the business if they so wish.

6) Who is the Respondent?

The business responding to the complaint

When referring to complaints and the complaint handling procedures, the Financial Ombudsman Service and the FCA often refer to the person making the complaint as the ‘Complainant’ and the firm responding to the complaint, the ‘Respondent’. It is good practice for firms to uses these terms during their investigations, communications and recording of the complaint to ensure continuity and clarity.

7) In limited circumstances, the Financial Ombudsman Service may look into a complaint before the initial 8-weeks have passed?

a. True

In limited circumstances, the FOS may look into a complaint before eight weeks have passed however they will need the agreement of both the business and the consumer and in these rare instances, the business still needs to deal with the complaint in line with the legal and regulatory complaints handling rules and guidelines.

8) The Financial Ombudsman Service’s decision is final?

a. True

A final decision by the Financial Ombudsman Service is the end of the complaints handling process and neither the complainant nor the respondent (business) can appeal against that decision.

9) The Ombudsman may dismiss a complaint referred to them, without considering its merits, if they consider that: –

(Multiple answers accepted)

a. The complaint is frivolous or vexatious
d. Dealing with such a type of complaint would otherwise seriously impair the effective operation of the Financial Ombudsman Service

DISP 3.3.4 states that the Ombudsman may dismiss a complaint referred to the Financial Ombudsman Service on or after 9 July 2015 without considering its merits, if the Ombudsman considers that: –

• The complaint is frivolous or vexatious
• The subject matter of the complaint has been dealt with, or is being dealt with, by a comparable ADR entity
• The subject matter of the complaint has been the subject of court proceedings where there has been a decision on the merits
• The subject matter of the complaint is the subject of current court proceedings, unless proceedings are stayed or sisted (by agreement of all parties, or order of the court) so that the matter may be considered by the Financial Ombudsman Service
• Dealing with such a type of complaint would otherwise seriously impair the effective operation of the Financial Ombudsman Service

10) A customer tells you that they don’t like the white paper you use for sending them letters and prefer coloured paper and so want to make a complaint – what should you say to them?

MARKER NOTE: This question has no direct answer and is more about seeing if the employee understands that ANY issue raised by a customer, no matter how small or seemingly irrelevant, should still be handled as a complaint.

Customers can and often do complain about anything and it is true that sometimes they are after compensation or just making trouble for no apparent reason, however it is also possible that a issue raised by a customer is real to them, even if you can’t see why.

In the question example, many employees may say that this is a silly issue and they would therefore not raise it as a complaint, preferring to advise the customer that the paper is white and their issue is invalid. However, with the correct approach and complaint handling skills, an employee may discover that the customer is losing their sight and can see bright coloured paper text very well – they may jump straight in to wanting to complain as they are frustrated or embarrassed about their condition.

Teaching your employees to always treat every issue as a complaint and trying to be sensitive and resolve issues at point of contact can often result in reduced complaints, happier customers and reduced referrals to the FOS.

This is the end of test 2 answer paper. Where you have identified any gaps or misunderstandings in an assessment, you should use the additional answers provided to teach and support the respondent. You should also scan/save a copy of the completed quiz and marking sheet and complete any assessment/evaluations forms that you use for training and development and record these in the employees training file.

6 Test Marking Sheets