Complaints Procedure | Template for FCA Applications

1.1 Introduction

The FCA defines a complaint as “any expression of dissatisfaction, whether oral or written, and whether justified or not”; a very wide and all encompassing description. However, a complaint is also an opportunity to turn an unhappy customer into a satisfied long term client. A dissatisfied customer who finds their issues dealt with swiftly and professionally will frequently have more respect for the firm than where there experience is smooth and untroubled. Customers need to have confidence that if something goes wrong during the sales and after sales process, the company in that part of the supply chain will treat their complaint seriously and take appropriate action. If we do not deal with the complaint to the satisfaction of the customer, who is the arbiter in the matter, the customer has the right to refer the complaint to the Financial Ombudsman Service (FOS). The FOS will levy a charge for the investigating the complaint, consequently all complaints referred to the FOS will cost the firm. Finally, any decision made by the ombudsman is binding on the firm.

The FCA reinforces this message by means of strict guidelines, which the company must follow for complaints regarding regulated sales. In particular, the FCA expects complaints to be thoroughly investigated and comprehensively documented.

Following the procedures in this manual will reduce the number of complaints referred to the FOS and save costs. However, following these procedures is also an essential element of HIRETT’s compliance management as the recording and analysis of complaints will help us identify problems with individuals, processes and systems.

1.2 Background
The PSR’s require firms to provide users of its services with details of the firm’s complaints procedures and the availability of the FOS. For single payment transactions, this information must be provided in good time before the client is bound by the single payment service contract. For framework contracts, this information must be provided in good time before the client is bound by the framework contract. In both cases, where the contract is concluded using distance means, the information can be provided immediately after conclusion of the contract if the method used to conclude the contract does not enable earlier provision.

FCA rule 1.21 states that a firm must have in place and operate appropriate and effective internal complaint handling procedures (which must be written down) for handling any expression of dissatisfaction, whether oral or written, and whether justified or not, from or on behalf of an eligible complainant about that firm’s provision of, or failure to provide, a financial service.

This Internal Complaints Procedure is designed to manage compliance with the FCA guidelines.

The firm will refer eligible complainants in writing to the availability of its internal complaint handling procedure at, or immediately after, the point of sale. This is covered in HIRETT’s Terms and Conditions. The firm will publish details of its internal complaint handling procedures, supply a copy on request to an eligible complainant, and supply a copy automatically to the complainant when it receives a complaint from an eligible complainant unless the complaint is resolved by close of business on the next business day.

The firm’s internal complaint handling procedures makes provision for:
1. complaints to be investigated by an employee of sufficient competence who, where appropriate, was not directly involved in the matter which is the subject of the complaint
2. the person charged with responding to complaints to have the authority to settle complaints (including the offer of redress where appropriate) or to have ready access to someone who has the necessary authority
3. responses to complaints to address adequately the subject matter of the complaint and, where a complaint is upheld, to offer appropriate redress

____________(name)____________ will be responsible for handling all complaints made to the company.

HIRETT will ensure any staff it employs receive training regarding its internal complaint handling procedure during their induction training. An appropriate complaints log is used to record all types of complaints.

1.3 Eligibility to bring complaints to the FOS

1.4 Eligible Complainants

• Trustees of a trust with a net asset value less than £1 million
• Charities with annual income of less than £1 million
• Someone acting on behalf of a deceased person (e.g. an executor)
• Potential Customers
• Members of a group policy set up for them by an employer
• Private individuals
• Micro-enterprises (employs fewer than 10 people and have a turnover or annual balance sheet that does not exceed £2 million).

1.5 Non Reportable Complaints
A client with a non-reportable complaint does NOT have the right to refer their complaint to the Financial Ombudsman Service. Any complaint that is resolved by close of business on the day following receipt becomes non-reportable automatically. Complaints made by non-eligible complainants are also classed as non-reportable. Any complaint that does not involve an allegation that the complainant has suffered, or may suffer, financial loss, material distress or material inconvenience is non-reportable.

HIRETT aims to treat all complaints fairly and reasonably. Non-reportable complaints shall be dealt with in the same manner as reportable complaints, except for the fact that we are unable to refer the clients to the Financial Ombudsman Service.

1.6 Receipt of Complaints

1.6.1 Written Complaints
All written complaints must be date stamped on the day of receipt in the office. This will evidence adherence to the timescale for complaints handling. Complaints by e-mail also fall into this category and should be printed upon the day of receipt. The date of receipt will be automatically included on the printout.

1.6.2 Verbal Complaints
____________(name)____________ will assess whether or not the client is actually complaining and will attempt to resolve the complaint during the course of their conversation. Any complaints resolved verbally will be recorded in the Complaints Log but will be flagged as NON REPORTABLE.

1.7 Responding to Complaints
On receipt of a complaint, a respondent must ensure that the complainant is kept informed thereafter of the progress of the measures being taken for the complaint’s resolution send the complainant a prompt written acknowledgement providing early reassurance that it has received the complaint and is dealing with it.

1.7.1 Final or other response
The respondent must, by the end of 15 business days after its receipt of the complaint, send the complainant:
1. a final response
2. or a written response which explains why it is not in a position to make a final response and indicates when it expects to be able to provide one
3. informs the complainant that he may now refer the complaint to the Financial Ombudsman Service
4. encloses a copy of the Financial Ombudsman Service standard explanatory leaflet.

In exceptional situations, if a full reply cannot be given to all the points raised in a complaint for reasons beyond the control of the firm, then the firm will send a holding reply, clearly indicating the reasons for the delay in providing a full reply to the complaint and specifying the deadline by which the payment service user will receive a full reply. The deadline must not be later than 35 business days after the day on which the firm received the complaint.

1.7.2 Respondents with two-stage complaints procedures
If, within 15 business days of receiving a complaint, the respondent sends the complainant a written response which:
5. Offers redress or remedial action (whether or not it accepts the complaint) or rejects the complaint and gives reasons for doing so
6. Informs the complainant how to pursue his complaint with the respondent if he remains dissatisfied
7. Refers to the ultimate availability of the Financial Ombudsman Service if he remains dissatisfied with the respondent’s response
8. Indicates it will regard the complaint as closed if it does not receive a reply within 15 business days
The information regarding the Financial Ombudsman Service required to be provided in responses sent under the complaints time limit should be set out prominently within the text of those responses.

1.7.3 Final Response
The final response letter must include the following information:
9. Offer of redress (or rejection of the complaint) and the reason for doing so
10. Information on how the complainant can pursue the complaint if they are still dissatisfied
11. Reference to the availability of the Financial Ombudsman Scheme and advice that the client must refer the complaint to the FOS within six months from the date of the final response letter
12. Indication that the firm will regard the complaint as closed if it does not receive a reply within 15 business days.
13. A FOS leaflet

1.8 Recording Complaints
FCA Regulations require that all complaints are properly recorded, whether they are written or verbal. Records must be kept for a minimum period of three years from the date of receipt. The following information must be included:

• Name of complainant
• Contact number
• Date/Time the complaint was received
• Substance of the complaint
• Any correspondence relating to the complaint, including details of any redress offered by the firm
• Additional contact details, e.g. client’s address
• Complaint category

1.9 Definition of a Closed Complaint
A closed complaint is a complaint:
14. Where the firm has sent a final response
15. Where the complainant has indicated in writing acceptance of the firm’s earlier response
16. Where the complaint is reported as closed because the complainant has not replied to us within 15 business days of the written response

Where a complaint is reported as closed because the complainant has not replied to us within 15 business days, we may treat the date of the final response as the date the complaint was closed for the purposes of reporting to the FCA. Once a complaint has been closed the Complaint Log must be updated.