1. (1)

   This 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.

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.

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.

This chapter does not apply to:

1. (1)

   [deleted]738

   738
2. (2)

   a credit union; and

3. (3)

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

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

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.

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.

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 and the complaints reporting rules will apply only if the complaint is about the outcome of the review.

1. (1)

   A firm 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.

2. (2)

   Notwithstanding (1), the complaints handling rules and complaints record rule will continue to apply in respect of complaints concerning MiFID business.

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.

This chapter (except the complaints record rule and the complaints reporting rules) applies to licensees for complaints from eligible complainants.

This chapter (except the complaints record rule and the complaints reporting rules) applies to VJ participants for complaints from eligible complainants as part of the standard terms.

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.

To aid consumer awareness of the protections offered by the provisions in this chapter, respondents must:

1. (1)

   publish appropriate summary details of their internal process for dealing with complaints promptly and fairly;

2. (2)

   refer eligible complainants in writingto the availability of these summary details at, or immediately after, the point of sale; and

3. (3)

   provide such summary details in writing to eligible complainants:

   1. (a)

      on request; and

   2. (b)

      when acknowledging a complaint

Where the activity does not involve a sale, the obligation in DISP 1.2.1R (2)

shall apply at, or immediately after, the point when contact is first made with an eligible complainant.

Effective and transparent procedures for the reasonable and prompt handling of complaints must be established, implemented and maintained by:

1. (1)

   a respondent; and

2. (2)

   a branch of a UKfirm in another EEA State.

In respect of complaints that do not relate to MiFID business, a respondent must put in place appropriate management controls and take reasonable steps to ensure that in handling complaints it identifies and remedies any recurring or systemic problems, for example, by:

1. (1)

   analysing the causes of individual complaints so as to identify root causes common to types of complaint;

2. (2)

   considering whether such root causes may also affect other processes or products, including those not directly complained of; and

3. (3)

   correcting, where reasonable to do so, such root causes.

Once a complaint has been received by a respondent, it must:

1. (1)

   investigate the complaint competently, diligently and impartially;

2. (2)

   assess fairly, consistently and promptly:

   1. (a)

      the subject matter of the complaint;

   2. (b)

      whether the complaint should be upheld;

   3. (c)

      what remedial action or redress (or both) may be appropriate;

   4. (d)

      if appropriate, whether it has reasonable grounds to be satisfied that another respondent may be solely or jointly responsible for the matter alleged in the complaint;

taking into account all relevant factors;

1. (3)

   offer redress or remedial action when it decides this is appropriate;

2. (4)

   explain to the complainant promptly and, in a way that is fair, clear and not misleading, its assessment of the complaint, its decision on it, and any offer of remedial action or redress; and

3. (5)

   comply promptly with any offer of remedial action or redress accepted by the complainant.

Where a complaint against a respondent is referred to the Financial Ombudsman Service, the respondent must cooperate fully with the Financial Ombudsman Service and comply promptly with any settlements or awards made by it.

The following rules do not apply to a complaint that is resolved by a respondent by close of business on the business day following its receipt:

1. (1)

   the complaints time limit rules;

2. (2)

   the complaints forwarding rules;

3. (3)

   the complaints reporting rules; and

4. (4)

   the complaints record rule, if the complaint does not relate to MiFID business.

On receipt of a complaint, a respondent must:

1. (1)

   send the complainant a prompt written acknowledgement providing early reassurance that it has received the complaint and is dealing with it; and

2. (2)

   ensure the complainant is kept informed thereafter of the progress of the measures being taken for the complaint's resolution.

The respondent must, by the end of eight weeks after its receipt of the complaint, send the complainant:

1. (1)

   a final response; or

2. (2)

   a written response which:

   1. (a)

      explains why it is not in a position to make a final response and indicates when it expects to be able to provide one;

   2. (b)

      informs the complainant that he may now refer the complaint to the Financial Ombudsman Service;

   3. (c)

DISP 1.6.2 R does not apply if the complainant has already indicated in writing acceptance of a response by the respondent, provided that the response:

1. (1)

   informed the complainant how to pursue his complaint with the respondent if he remains dissatisfied; 28

2. (2)

   referred to the ultimate availability of the Financial Ombudsman Service if he remains dissatisfied with the respondent's response;28

If, within eight weeks of receiving a complaint, the respondent sends the complainant a written response which:

1. (1)

   offers redress or remedial action (whether or not it accepts the complaint) or rejects the complaint and gives reasons for doing so;

2. (2)

   informs the complainant how to pursue his complaint with the respondent if he remains dissatisfied;

3. (3)

   refers to the ultimate availability of the Financial Ombudsman Service if he remains dissatisfied with the respondent's response; and

4. (4)

   indicates it will regard the complaint as closed if it does not receive a reply within eight weeks;

   17

the respondent is not obliged to continue to comply with DISP 1.6.2 R unless the complainant indicates that he remains dissatisfied, in which case, the obligation to comply with DISP 1.6.2 R resumes.

If the complainant takes more than a week to reply to a written response of the kind described in DISP 1.6.5 R, the additional time in excess of a week will not count for the purposes of the time limits in DISP 1.6.2 R or the complaints reporting rules.

A respondent that has reasonable grounds to be satisfied that another respondent may be solely or jointly responsible for the matter alleged in a complaint may forward the complaint, or the relevant part of it, in writing to that other respondent, provided it:

1. (1)

   does so promptly;

2. (2)

   informs the complainant promptly in a final response of why the complaint has been forwarded by it to the other respondent, and of the other respondent's contact details; and

3. (3)

   where jointly responsible for the fault alleged in the complaint, it complies with its own obligations under this chapter in respect of that part of the complaint it has not forwarded.

When a respondent receives a complaint that has been forwarded to it under DISP 1.7.1 R, the complaint is treated for the purposes of DISP as if made directly to that respondent, and as if received by it when the forwarded complaint was received.

If a respondent receives a complaint which is outside the time limits for referral to the Financial Ombudsman Service (see DISP 2.814)14 it may reject the complaint without considering the merits, but must explain this to the complainant in a final response in accordance with DISP 1.6.2 R.

A firm, including, in the case of MiFID business, a branch of a UKfirm in another EEA state, must keep a record of each complaint received and the measures taken for its resolution, and retain that record for:

1. (1)

   at least five years where the complaint relates to MiFID business; and

2. (2)

   three years for all other complaints;

from the date the complaint was received.

Twice a year a firm must provide the FSA with a complete report concerning complaints received from eligible complainants. The report must be set out in the format in DISP 1 Annex 1.

1 [Text to follow]

1 Firms that are part of a group may submit a joint report to the FSA . The joint report must contain the information required from all firms concerned and clearly indicate the firms on whose behalf the report is submitted. The requirement to provide a report, and the responsibility for the report, remains with each firm in the group.

DISP 1 Annex 1 requires (for the relevant reporting period) information about:

1. (1)

   the total number of complaints received by the firm, broken down according to the categories and generic product types described in DISP 1 Annex 1 which are relevant to the firm;

2. (2)

   the total number of complaints closed by the firm:

   1. (a)

      within four weeks or less of receipt;

   2. (b)

      within four to eight weeks of receipt; and

   3. (c)

      more than eight weeks after receipt;

3. (3)

   the total number of complaints:

   1. (a)

      upheld by the firm in the reporting period;

   2. (b)

      that the firm knows have been referred to, and accepted by, the Financial Ombudsman Service in the reporting period;

   3. (c)

      outstanding at the beginning of the reporting period; and

   4. (d)

      outstanding at the end of the reporting period; and

4. (4)

   the total amount of redress paid in respect of complaints during the reporting period.

The relevant reporting periods are:

1. (1)

   the six months immediately following a firm'saccounting reference date; and

2. (2)

   the six months immediately preceding a firm'saccounting reference date.

Reports are to be submitted to the FSA within 30 business days of the end of the relevant reporting periods through, and in the electronic format specified in, the FSA Complaints Reporting System or the appropriate section of the FSA website.

If a firm is unable to submit a report in electronic format because of a systems failure of any kind, the firm must notify the FSA , in writing and without delay, of that systems failure.

A closed complaint is a complaint where:

1. (1)

   the firm has sent a final response; or

2. (2)

   the complainant has indicated in writing acceptance of the firm's earlier response under DISP 1.6.4 R; or

3. (3)

   for a firm which operates a two-stage complaints procedure, the complainant has not indicated that he remains dissatisfied within eight weeks of the response sent by the firm under DISP 1.6.5 R.

For the purpose of inclusion in the public record maintained by the FSA, a firm must:

1. (1)

   provide the FSA, at the time of its authorisation, with details of a single contact point within the firm for complainants; and

2. (2)

   notify the FSA of any subsequent change in those details when convenient and, at the latest, in the firm's next report under the complaints reporting rules.

The Society must establish and maintain appropriate and effective procedures for handling complaints by policyholders against members of the Society which comply with this chapter.

A member of the Society must, in complying with this chapter, ensure that the arrangements which the member maintains are compatible with the Lloyd's complaint procedures, so that, taken as a whole, the requirements of this sourcebook are met.

The Society must take reasonable steps to ensure that complaints by policyholders against members of the Society are dealt with under the Lloyd's complaint procedures and that members comply with the requirements of those procedures.

A complaint by a policyholder against a member of the Society may not be referred to the Financial Ombudsman Service until after the Lloyd's complaint procedures have been completed or until after the end of eight weeks from receipt of the complaint, whichever is the earlier.

1. (1)

   A notification claiming exemption under DISP 1.1.12 R from the complaints reporting rules and the rules relating to the funding of the Financial Ombudsman Service must be given to the FSA by the Society on behalf of any member eligible for an exemption.

2. (2)

   The Society must notify the FSA if the conditions relating to such an exemption no longer apply to a member who is exempt.

The report to be sent to the FSA under the complaints reporting rules must be provided by the Society and must cover all complaints by policyholders against members falling within the scope of the complaints reporting rules.

A members' adviser must establish and maintain effective arrangements for handling any complaint from a member of the Society regarding advice given to the member in connection with the acquiring or disposing of syndicate participation.

The Society must establish and maintain appropriate and effective arrangements for handling any complaint from a member or a former member about:

1. (1)

   regulated activities carried on by the Society;

2. (2)

   the Society'sregulatory functions carried on by the Society, the Council or those to whom the Council delegates authority to carry out such functions;

3. (3)

   advice given by an underwriting agent to a person to become, continue or cease to be, a member of a particular syndicate; and

4. (4)

   the management by a managing agent of the underwriting capacity of a syndicate on which the complainant participates or has participated.

The Society must maintain by byelaw one or more appropriate effective schemes for the resolution of disputes between an individual member or a former member who was an individual member and:

1. (1)

   his underwriting agent; or

2. (2)

   the Society.

For the purposes of DISP 1.11.13 R "individual member" includes a member which is a limited liability partnership or a body corporate whose members consist only of, or of the nominees for, a single natural person or a group of connected persons.

A contravention of DISP 1.11.13 R or DISP 1.11.14 R does not give rise to a right of action by a private person under section 150 of the Act (Actions for damages) and each of those rules is specified under section 150(2) of the Act as a provision giving rise to no such right of action.

Complaints return form

This annex consists only of one or more forms. Forms are to be found through the following address:

Complaints return form - DISP 1 Annex 1 R3414216