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Status: You are viewing the version of the handbook as on 2013-03-31.

DISP 1.1 Purpose and application

Purpose

DISP 1.1.1GRP

630This chapter contains rules and guidance on how respondents should deal promptly and fairly with complaints in respect of business carried on from establishments in the United Kingdom,11 by certain branches of firms in the EEA or by certain EEA firms carrying out activities in the United Kingdom under the freedom to provide cross border services.11 It is also relevant to those who may wish to make a complaint or refer it to the Financial Ombudsman Service.

Background

DISP 1.1.2GRP

Details of how this chapter applies to each type of respondent are set out below. For this purpose, respondents include:

  1. (1)

    persons carrying on regulated activities (firms),1332 providing payment services (payment service providers)8 or providing electronic money issuance services (electronic money issuers) 1332 and which are8 covered by the Compulsory Jurisdiction;

    8
  2. (2)

    persons covered by the Consumer Credit Jurisdiction (licensees); and

  3. (3)

    persons who have opted in to the Voluntary Jurisdiction (VJ participants).

Application to firms

DISP 1.1.3RRP
  1. (1)

    Subject to DISP 1.1.5 R, this15 chapter applies to a firm in respect of complaints from eligible complainants concerning activities carried on from an establishment maintained by it or its appointed representative in the United Kingdom.

    15
  2. (2)

    For complaints relating to the MiFID business of a firm, the complaints handling rules and the complaints record rule:

    1. (a)

      apply to complaints from retail clients and do not apply to complaints from eligible complainants who are not retail clients;

    2. (b)

      also apply in respect of activities carried on from a branch of a UK firm in another EEA State; and

    3. (c)

      do not apply in respect of activities carried on from a branch of an EEA firm in the United Kingdom.

  3. (3)

    9The complaints data publication rules do not apply in respect of activities carried on from a branch of an EEA firm in the United Kingdom or activities carried on by an EEA firm in the United Kingdom under the freedom to provide cross border services.11

DISP 1.1.4RRP

Where a firm has outsourced activities to a third party processor, DISP 1.1.3 R does not apply to the third party processor when acting as such, but applies to the firm which is taking responsibility for the acts and omissions of the third party processor in respect of the outsourced activities.

DISP 1.1.5RRP

This chapter does not apply to:

  1. (1)

    [deleted]731

    731
  2. (2)

    [deleted]14

    14
  3. (3)

    an authorised professional firm in respect of expressions of dissatisfaction about its non-mainstream regulated activities; and 15

  4. (4)

    complaints in respect of auction regulation bidding. 15

DISP 1.1.5ARRP
DISP 1.1.6GRP

CREDS 9 sets out rules for credit unions in relation to reporting complaints.14

14
DISP 1.1.6AGRP

14In relation to a credit union, the nature, scale and complexity of the credit union's business should be taken into account when deciding the appropriate procedures to put in place for dealing with complaints.

DISP 1.1.7RRP

This chapter applies to the Society, members of the Society and managing agents, subject to the Lloyd's complaint rules.

DISP 1.1.8RRP

An insurance intermediary, that is not also an insurer, must have in place and operate appropriate and effective procedures for registering and responding to complaints from a person who is not an eligible complainant.

[Note: article 10 of the Insurance Mediation Directive]

DISP 1.1.9G

[deleted]10

10
DISP 1.1.9AGRP

10The scope of this sourcebook does not include:

  1. (1)

    a complaint about pre-commencement investment business which was regulated by a recognised professional body (those complaints will be handled under the arrangements of that professional body); or

  2. (2)

    a complaint about the administration of an occupational pension scheme, because this is not a regulated activity (firms should refer complainants to the Pensions Advisory Service rather than to the Financial Ombudsman Service).

DISP 1.1.10RRP

In relation to a firm's obligations under this chapter, references to a complaint also include an expression of dissatisfaction which is capable of becoming a relevant new complaint or[deleted] a relevant transitional complaint.

2

Application to payment service providers

DISP 1.1.10ARRP

8This chapter (except the complaints record rule,9 the complaints reporting rules and the complaints data publication rules9) applies to payment service providers in respect of complaints from eligible complainants concerning activities carried on from an establishment maintained by it or its agent in the United Kingdom.

9
DISP 1.1.10BGRP
  1. (1)

    8In this sourcebook, the term payment service provider does not include full credit institutions (which are covered by this sourcebook as firms), but it does include small electronic money institutions.1332

    13321332
  2. (2)

    8Although payment service providers are not required to comply with the complaints record rule, it is in their interest to retain records of complaints so that these can be used to assist the Financial Ombudsman Service should this be necessary.

Application to electronic money issuers

DISP 1.1.10CRRP

1332This chapter (except the complaints record rule, the complaints reporting rules, and the complaints data publication rules) applies to electronic money issuers in respect of complaints from eligible complainants concerning activities carried on from an establishment maintained by it or its agent in the United Kingdom.

DISP 1.1.10DGRP
  1. (1)

    1332In this sourcebook, the term electronic money issuer does not include credit institutions, credit unions or municipal banks (which will be carrying on a regulated activity if they issue electronic money and will be covered by this sourcebook as firms in those circumstances), but it does include small electronic money institutions and persons who meet the conditions set out in regulation 75(1) or regulation 76(1) of the Electronic Money Regulations.

  2. (2)

    Although electronic money institutions are not required to comply with the complaints record rule, it is in their interest to retain records of complaints so that these can be used to assist the Financial Ombudsman Service should this be necessary.

Application to UCITS management companies

DISP 1.1.10ERRP

11For complaints related to collective portfolio management services of a UK UCITS management company for a UCITS scheme or an EEA UCITS scheme, DISP 1.1.3R (1) applies, except where modified as follows:

  1. (1)

    the consumer awareness rules, complaints handling rules and complaints record rule apply in respect of complaints from Unitholders rather than from eligible complainants; and

  2. (2)

    the consumer awareness rules, the complaints handling rules and the complaints record rule, as modified in (1), also apply where the services are provided from a branch in another EEA State (and any reference to respondent in the consumer awareness rules includes such a branch).

DISP 1.1.10FRRP

For complaints related to collective portfolio management services of an EEA UCITS management company for a UCITS scheme, DISP 1.1.3R (1) applies, except where modified as follows:

  1. (1)

    where the services are provided from a branch in the United Kingdom, the consumer awareness rules, complaints handling rules and complaints record rule apply in respect of complaints from Unitholders rather than from eligible complainants; and

  2. (2)

    this chapter, except the consumer awareness rules, complaints handling rules, complaints record rule and complaints data publication rules, also applies to an EEA UCITS management company providing services in the United Kingdom under the freedom to provide cross border services.

FSAVC Review

DISP 1.1.11RRP

Where the subject matter of a complaint is subject to a review directly or indirectly under the terms of the policy statement for the review of specific categories of FSAVC business issued by the FSA on 28 February 2000, the complaints resolution rules, the complaints time limit rules, the complaints record rule,9 the complaints reporting rules and the complaints data publication rules9 will apply only if the complaint is about the outcome of the review.

9

Consumer redress schemes

DISP 1.1.11ARRP

12Where the subject matter of a complaint falls to be dealt with (or has properly been dealt with) under a consumer redress scheme, the complaints resolution rules, the complaints time limits rules, the complaints record rule and the complaints reporting rules do not apply.

Exemptions for firms, payment service providers and electronic money issuers1332

DISP 1.1.12RRP
  1. (1)

    A firm, payment service provider 8 or electronic money issuer1332 falling within the Compulsory Jurisdiction which does not conduct business with eligible complainants and has no reasonable likelihood of doing so, can, by written notification to the FSA , claim exemption from the rules relating to the funding of the Financial Ombudsman Service, and from the remainder of this chapter.

    1332
  2. (2)

    Notwithstanding (1):11

    1. (a)

      the complaints handling rules and complaints record rule will continue to apply in respect of complaints concerning MiFID business; and11

    2. (b)

      the consumer awareness rules, the complaints handling rules and the complaints record rule will continue to apply in respect of complaints concerning the provision of collective portfolio management services.11

  3. (3)

    The exemption takes effect from the date on which the written notice is received by the FSA and will cease to apply when the conditions relating to the exemption no longer apply.

DISP 1.1.13GRP

SUP 15.6 refers to and contains requirements regarding the steps that firms must take to ensure that information provided to the FSA is accurate and complete. Those requirements apply to information submitted to the FSA under this chapter.

Application to licensees and VJ participants

DISP 1.1.14R
DISP 1.1.15RRP
DISP 1.1.16GRP

Although licensees and VJ participants are not required to comply with the complaints record rule, it is in their interest to retain records of complaints so that these can be used to assist the Financial Ombudsman Service should it be necessary.

DISP 1.1.17R

In relation to the Consumer Credit Jurisdiction only, FOS Ltd may dispense with, or modify, the application of the rules in this chapter to licensees where it considers it appropriate to do so and is satisfied that:

  1. (1)

    compliance by the licensee with the rules would be unduly burdensome or would not achieve the purpose for which the rules were made; and

  2. (2)

    it would not result in undue risk to the persons whose interests the rules were intended to protect.

DISP 1.1.18G

This power is intended to deal with exceptional circumstances, for example, where it is not possible for a licensee to meet the specified time limits, and any dispensation or modification is likely to be rare.

Outsourcing of complaint handling

DISP 1.1.19GRP
  1. (1)

    This chapter does not prevent:

    1. (a)

      the use by a respondent of a third party administrator to handle or resolve complaints (or both); or

    2. (b)

      two or more respondents arranging a one-stop shop for handling or resolving complaints (or both) under a service level agreement.

  2. (2)

    These arrangements do not affect respondents' obligations as set out in DISP or the provisions relating to outsourcing by a firm set out in SYSC 8 and SYSC 13.

DISP 1.1.20GRP

Further guidance on the application of this chapter is set out in the table in DISP 1 Annex 2.