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DISP 1.1 Purpose and application

Purpose

DISP 1.1.1 G RP

6 33This 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 1.1.2 G RP

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),1335 providing payment services (payment service providers)8 or providing electronic money issuance services (electronic money issuers) 1335 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 1.1.3 R RP
  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 1.1.4 R RP

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 1.1.5 R RP

This chapter does not apply to:

  1. (1)

    [deleted]734

    734
  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 1.1.5A R RP
DISP 1.1.6 G RP

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

14
DISP 1.1.6A G RP

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 1.1.7 R RP

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

DISP 1.1.8 R RP

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 1.1.9 G

[deleted]10

10
DISP 1.1.9A G RP

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 1.1.10 R RP

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 1.1.10A R RP

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 1.1.10B G RP
  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.1335

    13351335
  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 1.1.10C R RP

13 35This 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 1.1.10D G RP
  1. (1)

    1335In 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 1.1.10E R RP

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 1.1.10F R RP

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 1.1.11 R RP

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 1.1.11A R RP

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 issuers1335

DISP 1.1.12 R RP
  1. (1)

    A firm, payment service provider8 or electronic money issuer1335 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.

    1335
  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 1.1.13 G RP

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 1.1.14 R
DISP 1.1.15 R RP
DISP 1.1.16 G RP

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 1.1.17 R

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 1.1.18 G

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 1.1.19 G RP
  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 1.1.20 G RP

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

DISP 1.2 Consumer awareness rules

5Publishing and providing summary details

DISP 1.2.1 R RP

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

  1. (1)

    publish appropriate information regarding their internal procedures for the reasonable and prompt handling of complaints;615

    615
  2. (2)

    refer eligible complainants to the availability of this information:6155

    5615
      5
    1. (a)

      5in relation to a payment service, in the information on out-of-court complaint and redress procedures required to be provided or made available under regulations 36(2)(e) (Information required prior to the conclusion of a single payment service contract) or 40 (Prior general information for framework contracts) of the Payment Services Regulations; or

    2. (b)

      otherwise, in writing at, or immediately after, the point of sale; and

  3. (3)

    provide such information in writing and free of charge615 to eligible complainants:

    615
    1. (a)

      on request; and

    2. (b)

      when acknowledging a complaint

[Note: article 15 of the UCITS Directive

7
DISP 1.2.2 R RP

Where the activity does not involve a sale, the obligation in

DISP 1.2.1R (2)(b) 5 shall apply at, or immediately after, the point when contact is first made with an eligible complainant.

5Content of summary details

DISP 1.2.3 G RP

These summary details should cover at least:

  1. (1)

    how the respondent fulfils its obligation to handle and seek to resolve relevant complaints; and

  2. (2)

    (where the complaint falls within the jurisdiction of the Financial Ombudsman Service)7 that, if the complaint is not resolved, the complainant may be entitled to refer it to the Financial Ombudsman Service.

DISP 1.2.4 G RP

The summary details may be set out in a leaflet, and their availability may be referred to in contractual documentation.

5Financial Ombudsman Service logo

DISP 1.2.5 G RP

Respondents may also display or reproduce the Financial Ombudsman Service logo (under licence) in:

  1. (1)

    branches and sales offices to which eligible complainants have access; or

  2. (2)

    marketing literature or correspondence directed at eligible complainants;

provided it is done in a way which is not misleading.

DISP 1.2.5A G RP

7 DISP 1.2.5 G does not apply to a branch of a UK UCITS management company in another EEA State.

DISP 1.3 Complaints handling rules

DISP 1.3.1 R RP

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.

[Note: article 10 of the MiFID implementing Directive and article 6(1) of the UCITS implementing Directive]5

DISP 1.3.1A R RP

4 16These procedures must ensure that a complaint may be made free of charge.

[Note: article 6(3) of the UCITS implementing Directive]5

Procedures for UCITS management companies

DISP 1.3.1B R RP

5A UK UCITS management company must ensure that the procedures it establishes under DISP 1.3.1 R for the reasonable and prompt handling of complaints require that:

  1. (1)

    there are no restrictions on Unitholders exercising their rights in the event that the UCITS is authorised in an EEA State other than the United Kingdom; and

  2. (2)

    Unitholders are allowed to file complaints in any of the official languages of the Home State of the UCITS scheme or EEA UCITS scheme or of any EEA State to which a notification has been transmitted by the competent authority of the scheme'sHome State in accordance with article 93 of the UCITS Directive.

[Note: article 15 of the UCITS Directive]

DISP 1.3.2 G RP

These procedures should:

  1. (1)

    allow complaints to be made by any reasonable means; and

  2. (2)

    recognise complaints as requiring resolution.

DISP 1.3.2A G RP

4 16These procedures should, taking into account the nature, scale and complexity of the respondent's business, ensure that lessons learned as a result of determinations by the Ombudsman are effectively applied in future complaint handling, for example by:

  1. (1)

    relaying a determination by the Ombudsman to the individuals in the respondent who handled the complaint and using it in their training and development;

  2. (2)

    analysing any patterns in determinations by the Ombudsman concerning complaints received by the respondent and using this in training and development of the individuals dealing with complaints in the respondent; and

  3. (3)

    analysing guidance produced by the FSA , other relevant regulators and the Financial Ombudsman Service and communicating it to the individuals dealing with complaints in the respondent.

DISP 1.3.3 R RP

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. (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.

DISP 1.3.3B G RP

4The processes that a firm should have in place in order to comply with DISP 1.3.3 R may include, taking into account the nature, scale and complexity of the firm's business including, in particular, the number of complaints the firm receives:

  1. (1)

    the collection of management information on the causes of complaints and the products and services complaints relate to, including information about complaints that are resolved by the firm by close of business on the business day following its receipt;

  2. (2)

    a process to identify the root causes of complaints (DISP 1.3.3 R (1));

  3. (3)

    a process to prioritise dealing with the root causes of complaints;

  4. (4)

    a process to consider whether the root causes identified may affect other processes or products (DISP 1.3.3 R (2));

  5. (5)

    a process for deciding whether root causes discovered should be corrected and how this should be done (DISP 1.3.3 R (3));

  6. (6)

    regular reporting to the senior personnel where information on recurring or systemic problems may be needed for them to play their part in identifying, measuring, managing and controlling risks of regulatory concern; and

  7. (7)

    keeping records of analysis and decisions taken by senior personnel in response to management information on the root causes of complaints.

DISP 1.3.4 G

In respect of complaints that relate to MiFID business, a firm should put in place appropriate management controls and take reasonable steps, in the same way as for complaints that do not relate to MiFID business (see DISP 1.3.3 R and DISP 1.3.3B G), in order to detect and minimise any risk of compliance failures (SYSC 6.1) and to comply with Principle 6 (Customers' interests).4

4
DISP 1.3.5 G

[deleted]4

4
DISP 1.3.6 G RP

4Where a firm identifies (from its complaints or otherwise) recurring or systemic problems in its provision of, or failure to provide, a financial service, it should (in accordance with Principle 6 (Customers' interests) and to the extent that it applies) consider whether it ought to act with regard to the position of customers who may have suffered detriment from, or been potentially disadvantaged by, such problems but who have not complained and, if so, take appropriate and proportionate measures to ensure that those customers are given appropriate redress or a proper opportunity to obtain it. In particular, the firm should:

  1. (1)

    ascertain the scope and severity of the consumer detriment that might have arisen; and

  2. (2)

    consider whether it is fair and reasonable for the firm to undertake proactively a redress or remediation exercise, which may include contacting customers who have not complained.

DISP 1.3.7 R RP
  1. (1)

    4A firm must appoint an individual at the firm, or in the same group as the firm, to have responsibility for oversight of the firm's compliance with DISP 1.

  2. (2)

    The individual appointed must be carrying out agoverning function at the firm or in the same group as the firm.

DISP 1.3.8 G RP

4 Firms are not required to notify the name of the individual to the FSA or the Financial Ombudsman Service but would be expected to do so promptly on request. There is no bar on a firm appointing different individuals to have the responsibility at different times where this is to accommodate part-time or flexible working.

DISP 1.4 Complaints resolution rules

DISP 1.4.1 R RP

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

  1. (1)

    investigate the complaint competently, diligently and impartially, obtaining additional information as necessary;59

  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.

DISP 1.4.2 G RP

Factors that may be relevant in the assessment of a complaint under DISP 1.4.1R (2) include the following:

5 9
  1. (1)

    all the evidence available and the particular circumstances of the complaint;

  2. (2)

    similarities with other complaints received by the respondent;

  3. (3)

    relevant guidance published by the FSA , other relevant regulators, the Financial Ombudsman Service or former schemes; and

  4. (4)

    appropriate analysis of decisions by the Financial Ombudsman Service concerning similar complaints received by the respondent (procedures for which are described in DISP 1.3.2A G).59

DISP 1.4.3 G RP

The respondent should aim to resolve complaints at the earliest possible opportunity, minimising the number of unresolved complaints which need to be referred to the Financial Ombudsman Service.

DISP 1.4.4 R RP

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.

1
DISP 1.4.5 G RP

DISP App 1 contains guidance to respondents on the approach to assessing financial loss and appropriate redress where a respondent upholds a complaint concerning the sale of an endowment policy for the purposes of repaying a mortgage.

DISP 1.4.6 G RP

DISP App 3 sets out the approach which respondents should use in assessing complaints relating to the sale of payment protection contracts and determining appropriate redress where a complaint is upheld.4

DISP 1.5 Complaints resolved by close of the next business day

DISP 1.5.1 R RP

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;

    6
  4. (4)

    the complaints record rule, if the complaint does not relate to MiFID business or collective portfolio management services for a UCITS scheme or an EEA UCITS scheme7; and6

  5. (5)

    the complaints data publication rules.6

DISP 1.5.2 G RP

Complaints falling within this section are still subject to the complaint resolution rules.

DISP 1.5.3 G

For the purposes of this section:

  1. (1)

    a complaint received on any day other than a business day, or after close of business on a business day, may be treated as received on the next business day; and

  2. (2)

    a complaint is resolved where the complainant has indicated acceptance of a response from the respondent, with neither the response nor acceptance having to be in writing

DISP 1.6 Complaints time limit rules

Keeping the complainant informed

DISP 1.6.1 R RP

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.

Final or other response within eight weeks

DISP 1.6.2 R RP

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

  1. (1)

    a 'final response', being a written response from the respondent which:39

    39
    1. (a)

      accepts the complaint and, where appropriate, offers redress or remedial action; or

    2. (b)

      offers redress or remedial action without accepting the complaint; or

    3. (c)

      rejects the complaint and gives reasons for doing so;

    and which:

    1. (d)

      encloses a copy of the Financial Ombudsman Service's standard explanatory leaflet;

    2. (e)

      informs the complainant that if he remains dissatisfied with the respondent's response, he may now refer his complaint to the Financial Ombudsman Service and must do so within six months; 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 1.6.3 G

[deleted]39

Complainant's written acceptance

DISP 1.6.4 R RP

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:

2 8
  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

DISP 1.6.5 R

[deleted]39

3 9
DISP 1.6.6 R

[deleted]39

3 9
DISP 1.6.6A G RP

2 8The information regarding the Financial Ombudsman Service required to be provided in responses sent under the complaints time limit rules (DISP 1.6.2 R and DISP 1.6.4 R)39 should be set out prominently within the text of those responses.

3 9

Speed and quality of response

DISP 1.6.7 G RP

It is expected that within eight weeks of their receipt, almost all complaints to a respondent will have been substantively addressed by it through a final response or response as described in DISP 1.6.4 R.39

DISP 1.6.8 G RP

When assessing a respondent's response to a complaint, the FSA may have regard to a number of factors, including, the quality of response, as against the complaints resolution rules, as well as the speed with which it was made.

DISP 1.7 Complaints forwarding rules

DISP 1.7.1 R RP

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.

Dealing with a forwarded complaint

DISP 1.7.2 R RP

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.

DISP 1.7.3 G RP

On receiving a forwarded complaint, the standard time limits will apply from the date on which the respondent receives the forwarded complaint.

DISP 1.9 Complaints record rule

DISP 1.9.1 R RP

A firm, including, in the case of MiFID business or collective portfolio management services for a UCITS scheme or an EEA UCITS scheme,2 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 or collective portfolio management services for a UCITS scheme or an EEA UCITS scheme;2 and

  2. (2)

    three years for all other complaints;

from the date the complaint was received.

[Note: article 10 of the MiFID implementing Directive and article 6(2) of the UCITS implementing Directive]2

DISP 1.9.2 G RP

1The records of the measures taken for resolution of complaints may be used to assist with the collection of management information pursuant to DISP 1.3.3BG (1) and regular reporting to the senior personnel pursuant to DISP 1.3.3BG (6).

DISP 1.10 Complaints reporting rules

DISP 1.10.1 R RP

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.

2Forwarded complaints2

DISP 1.10.1A R RP

1 A firm must not include in the report a complaint that has been forwarded in its entirety to another respondent under the complaints forwarding rules.1

1
DISP 1.10.1B G RP

1 Where a firm has forwarded to another respondent only part of a complaint or where two respondents may be jointly responsible for a complaint, then the complaint should be reported by both firms.1

1

Joint reports2

DISP 1.10.1C R RP

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 1.10.1D G RP

1Not all the firms in the group need to submit the report jointly. Firms should only consider submitting a joint report if it is logical to do so, for example, where the firms have a common central complaints handling team and the same accounting reference date.

Information requirements2

DISP 1.10.2 R RP

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

  1. (1)

    the total number of complaints received by the firm;

    1
  2. (2)

    the total number of complaints closed by the firm:

    1. (a)

      within four weeks or less of receipt;

    2. (b)

      more than four weeks and up1 to eight weeks of receipt; and

      1
    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; and1

    2. (b)

      outstanding at the beginning of the reporting period; and1

      1
  4. (4)

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

DISP 1.10.3 G RP

For the purpose of DISP 1.10.2 R, when completing the return, the firm should take into account the following matters.

  1. (1)

    If a complaint could fall into more than one category, the complaint should be recorded in the category which the firm considers to form the main part of the complaint.

  2. (2)

    Under DISP 1.10.2R (3)(a), a firm should report any complaint to which it has given a response 1which upholds the complaint, even if any redress offered is disputed by the complainant. For this purpose, 'response' includes a response under the complainant's written acceptance rule (DISP 1.6.4 R) and a final response .1 Where a complaint is upheld in part or where the firm does not have enough information to make a decision yet chooses to make a goodwill payment to the complainant1, a firm should treat the complaint as upheld for reporting purposes. However, where a firm rejects a complaint, yet chooses to make a goodwill payment to the complainant, the complaint should be recorded as 'rejected'.

    13151
  3. (3)

    If a firm reports on the amount of redress paid under DISP 1.10.2R (4), redress should be interpreted to include an amount paid, or cost borne, by the firm, where a cash value can be readily identified, and should include:

    1. (a)

      amounts paid for distress and inconvenience;

    2. (b)

      a free transfer out to another provider which transfer would normally be paid for;

    3. (c)

      goodwill payments and goodwill gestures;

    4. (d)

      interest on delayed settlements;

    5. (e)

      waiver of an excess on an insurance policy; and

    6. (f)

      payments to put the consumer back into the position the consumer should have been in had the act or omission not occurred.

  4. (4)

    If a firm reports on the amount of redress paid under DISP 1.10.2R (4), the redress should not, however, include repayments or refunds of premiums which had been taken in error (for example where a firm had been taking, by direct debit, twice the actual premium amount due under a policy). The refund of the overcharge would not count as redress.

DISP 1.10.4 R RP

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.

DISP 1.10.5 R RP

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.

DISP 1.10.6 R RP

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.

DISP 1.10.6A R RP
  1. (1)

    5If a firm does not submit a complete report by the date on which it is due, in accordance with DISP 1.10.5 R, the firm must pay an administrative fee of £250.

  2. (2)

    The administrative fee in (1) does not apply if the firm has notified the FSA of a systems failure in accordance with DISP 1.10.6 R.

DISP 1.10.7 R RP

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.315

    315
DISP 1.10.8 G

[deleted]315

3 15

Notification of contact point for complainants

DISP 1.10.9 R RP

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.

DISP 1.10A Complaints data publication rules

Obligation to publish summary of complaints data

DISP 1.10A.1 R RP
  1. (1) 1

    Where, in accordance with DISP 1.10.1 R, a firm submits a report to the FSA reporting 500 or more complaints, it must publish a summary of the complaints data contained in that report (the complaints data summary).

  2. (2)

    Where, in accordance with DISP 1.10.1C R, a firm submits a joint report on behalf of itself and other firms within a group and that report reports 500 or more complaints, it must publish a summary of the complaints data contained in the joint report (the complaints data summary).

Format of publication

DISP 1.10A.2 R RP

The complaints data summary required by DISP 1.10A.1 R must be published in the format set out in DISP 1 Annex 1B R.

Time limits for publication

DISP 1.10A.3 R RP
  1. (1)

    Where the firm's relevant reporting period (as defined in DISP 1.10.4 R) ends between 1 January and 30 June, the firm must publish the complaints data summary no later than 31 August of the same year.

  2. (2)

    Where the firm's relevant reporting period (as defined in DISP 1.10.4 R) ends between 1 July and 31 December, the firm must publish the complaints data summary no later than 28 February of the following year.

Confirmation of publication

DISP 1.10A.4 R RP

A firm must immediately confirm to the FSA , in an email submitted tocomplaintsdatasummary@fsa.gov.uk, that the complaints data summary accurately reflects the report submitted to the FSA , that the summary has been published and where it has been published.

Publication on behalf of the firm

DISP 1.10A.5 E RP

A firm will be taken to have complied with DISP 1.10A.1R (1) or (2) if within the relevant time limit set out in DISP 1.10A.3 R the firm:

  1. (1)

    ensures that another person publishes the complaints data summary on its behalf; and

  2. (2)

    publishes details of where this summary is published.

Joint reports: provision of information to third party on request

DISP 1.10A.6 R RP

Any firm covered by a joint report, other than the firm that submitted the joint report, must provide details of where the complaints data summary is published to any person who requests them.

Mode and content of publication

DISP 1.10A.7 G RP

Firms may choose how they publish the complaints data summary. However, the summary should be readily available. For this reason, the FSA recommends that firms should publish the summary on their websites.

DISP 1.10A.8 G
  1. (1)

    The FSA recommends that firms should publish additional information alongside their data summaries in order to relate the number of complaints to the scale of the firm's relevant business. Firms are recommended to publish the relevant standard metrics set out in the table at DISP 1 Annex 1A G with the summaries. Where the complaints data summary relates to a joint report the metrics should cover all the firms included in the joint report.

  2. (2)

    If the recommended metrics do not accurately reflect the scale of the firm's relevant business, the FSA recommends that the firm should publish metrics which best reflect the scale of its business based on the number of its customers or accounts or policies. Firms may also publish other metrics where they consider that these would better reflect the scale of their business.

  3. (3)

    Firms may also publish other information to aid understanding, for example details of their internal processes for dealing with complaints.

DISP 1.11 The Society of Lloyd's

Complaints handling procedures1

DISP 1.11.1 R RP

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.

DISP 1.11.2 R RP

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.

DISP 1.11.3 R RP

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.

Referral to the Financial Ombudsman Service

DISP 1.11.4 R RP

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.

Exemptions for members

DISP 1.11.5 R RP
  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.

Complaints reporting rule

DISP 1.11.6 R RP

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.

Obligation to publish summary of complaints data

DISP 1.11.6A R RP

1Where, in accordance with DISP 1.11.6 R, the Society submits a report to the FSA reporting 500 or more complaints, it must publish a summary of the complaints data contained in that report (the complaints data summary).

Format of publication

DISP 1.11.6B R RP

1The Society must publish the complaints data summary in the format set out in the complaints publication form in DISP 1 Annex 1B R omitting details as to the firms and brands/trading names covered by the summary.

Time limits for publication

DISP 1.11.6C R RP

1The deadlines for publication of the Society's complaints data summaries are:

  1. (1)

    28 February for the summary of its report relating to the reporting period ending on 31 December of the previous year; and

  2. (2)

    31 August for the summary of its report relating to the reporting period ending on 30 June of the same year.

Confirmation of publication

DISP 1.11.6D R RP

1The Society must immediately confirm to the FSA, in an email submitted to complaintsdatasummary@fsa.gov.uk, that the complaints data summary accurately reflects the report submitted to the FSA, that the summary has been published and where it has been published.

Mode and content of publication

DISP 1.11.6E G RP

1The Society may choose how it publishes the complaints data summary. However, the complaints data summary should be readily available. For this reason, the FSA recommends that the Society publishes the summary on its website. The Society may publish further information with the complaints data summary to aid understanding.

Application to members

DISP 1.11.7 G RP

Each member of the Society is individually subject to the rules in this chapter as a result of the insurance market direction given in DISP 2.5.4 G under section 316 of the Act (Direction by Authority).

DISP 1.11.8 G RP

However, the Society operates a two-tier internal complaints handling procedure, currently set out in the "Code for Underwriting agents: UK Personal Lines Claims and Complaints Handling". Under this procedure, complaints by policyholders against members of the Society are considered by the managing agent and then, if necessary, by the Society's in-house Complaints Department. This procedure (and any procedure that may replace it) will be subject to the requirements in this chapter.

DISP 1.11.9 G RP

Members will individually comply with this chapter if and only if all complaints by policyholders against members are dealt with under the Lloyd's complaints procedures. Accordingly, certain of the obligations under this chapter, for example the obligation to report on complaints received and the obligation to pay fees under the rules relating to the funding of the Financial Ombudsman Service (FEES 5), must be complied with by the Society on behalf of members. Managing agents will not have to make a separate report to the FSA on complaints reported under the complaints reporting rules sent by the Society.

Complaints about the activities of members' advisers

DISP 1.11.10 R RP

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.

DISP 1.11.11 G RP

Complaints from members of the Society regarding the activities of members' advisers, which cannot be resolved by the members' adviser, cannot be referred to the Financial Ombudsman Service.

Complaints from members or former members

DISP 1.11.12 G RP

The Financial Ombudsman Service is not able to deal with the complaints listed in DISP 1.11.13 R and separate rules and guidance are therefore required.

DISP 1.11.13 R RP

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.

DISP 1.11.14 R RP

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.

DISP 1.11.15 R RP

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.

DISP 1.11.16 G RP

The schemes to which DISP 1.11.13 R currently refers are the Lloyd's Arbitration Scheme and the Lloyd's Members' Ombudsman respectively, but the Society may maintain other independent dispute resolution schemes in addition to, or instead of, either of these schemes.

DISP 1.11.17 G RP

The schemes referred to in DISP 1.11.13 R should be operationally independent of the Society.

DISP 1.11.18 G RP

An individual member or former member who was an individual member should not have access to the schemes referred to in DISP 1.11.13 R unless the complaints arrangements maintained by the Society have failed to resolve the complaint to his satisfaction within eight weeks of receiving it.

DISP 1.11.19 G RP

The Society should give the FSA adequate notice of all proposed changes to the byelaws relating to the schemes referred to in DISP 1.11.13 R.

DISP 1.11.20 G RP

When considering what is required to ensure the operational independence of the schemes referred to in DISP 1.11.13 R, or proposed changes in such schemes, the Society should take account of similar arrangements operated by the Financial Ombudsman Service.

DISP 1.11.21 R RP

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.

DISP 1 Annex 1 Complaints return form

DISP 1 Annex 1 R

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 R341321567814

DISP 1 Annex 1A Recommended metrics

G

This table belongs to DISP 1.10A.8 G

Type of business

Contextualised new complaint numbers

Recommended metrics

Banking and loans

Complaints per 1,000 accounts

The tariff base (number of accounts) at row 1, column 2 of the table in FEES 5 Annex 1 R as reported in the firm's most recent statement of total amount of relevant business

General insurance and pure protection (provision)

Complaints per £1m of annual gross premium income

The tariff base (annual gross premium income) at row 2, column 2 of the table in FEES 5 Annex 1 R as reported in the firm's most recent statement of total amount of relevant business

General insurance and pure protection (intermediation)

Complaints per £1m of annual income

The tariff base (annual income) at row 17, column 2 of the table in FEES 5 Annex 1 R reported in the firm's most recent statement of total amount of relevant business

Home finance

Complaints per 1,000 loans outstanding

The total number of balances outstanding (all loans) at row E.45 or E.53 of E(2) in SUP 16 Annex 19A (Mortgage Lenders and Administrators Return) as reported in the firm's most recent return

Investment (fund management)

Complaints per £1m of annual eligible income

The firm's annual eligible income as defined in sub-class D1 of FEES 6 Annex 3 R

Investment (intermediation)

Complaints per £1m of annual eligible income

The firm's annual eligible income as defined in sub-class D2 of FEES 6 Annex 3 R

Decumulation, life and pensions (provision)

Complaints per 1,000 policyholders

The number of the firm's policyholders at row 3 of Forms 51 - 54 (whichever are relevant) in IPRU(INS) Appendix 9.3R as reported in the firm's most recent form

Decumulation, life and pensions (intermediation)

Complaints per £1m of annual eligible income

The firm's annual eligible income as defined in sub-class C2 of FEES 6 Annex 3 R

Note 1: For the purposes of this annex the reference to complaints is a reference to complaints opened during the relevant reporting period.

Note 2: Where a firm undertakes both (a) general insurance and pure protection provision and (b) general insurance and pure protection intermediation, it can choose to use the metric which forms the greater part of its business.

Note 3: Where a firm undertakes both (a) fund management and (b) investment intermediation, it can choose to use the metric which forms the greater part of its business.

Note 4: Where a firm undertakes both (a) decumulation, life and pensions provision and (b) decumulation, life and pensions intermediation, it can choose to use the metric which forms the greater part of its business.

DISP 1 Annex 2 Application of DISP 1 to type of respondent / complaint7

4
DISP 1 Annex 2 G

1.201

The table below summarises the application of DISP 1. Where the table indicates that a particular section may apply, its application in relation to any particular activity or complaint is dependent on the detailed application provisions set out in DISP 1.

2.

In some cases the application of DISP 1 to firms depends on whether responsibility for the matter is reserved under an EU3 instrument to an incoming EEA firm'sHome State regulator. Reference should be made to the detailed application provisions set out in DISP 1.

3

Type of respondent/ complaint7

DISP 1.2 Consumer awareness rules

DISP 1.3 Complaints handling rules

DISP 1.4 - 1.8 Complaints resolution rules etc.

DISP 1.9 Complaints record rule

DISP 1.10 Complaints reporting rules

DISP 1.10A Complaints data publication rules4

firm (other than a UCITS management company when providing collective portfolio management services in respect of a UCITS scheme or an EEA UCITS scheme)5 in relation to complaints concerning non-MiFID business

Applies for eligible complainants

Applies for eligible complainants (DISP 1.3.4 G does not apply)

Applies for eligible complainants

Applies for eligible complainants

Applies for eligible complainants

Applies for eligible complainants4

firm in relation to complaints concerning MiFID business

Applies for eligible complainants

Applies for retail clients (DISP 1.3.3 R does not apply)

Applies for eligible complainants

Applies for retail clients

Applies for eligible complainants

Applies for eligible complainants45

5 UK UCITS management company in relation to complaints concerning collective portfolio management services in respect of a UCITS scheme or an EEA UCITS scheme provided under the freedom to provide cross border services

Applies for Unitholders

Applies for Unitholders

Applies for eligible complainants

Applies for Unitholders

Applies for eligible complainants

Applies for eligible complainants

5 branch of a UK UCITS management company in another EEA State in relation to complaints concerning collective portfolio management services in respect of an EEA UCITS scheme

Applies for Unitholders

Applies for Unitholders

Does not apply

Applies for Unitholders

Does not apply

Does not apply

branch of a UKfirm (other than a UK UCITS management company when providing collective portfolio management services in respect of an EEA UCITS scheme)5 in another EEA State in relation to complaints concerning non-MiFID business

Does not apply

Does not apply

Does not apply

Does not apply

Does not apply

Does not apply4

branch of a UKfirm in another EEA State in relation to complaints concerning MiFID business

Does not apply

Applies for retail clients (DISP 1.3.3 R does not apply)

Does not apply

Applies for retail clients

Does not apply

Does not apply4

incoming branch of an EEA firm (other than an EEA UCITS management company when providing collective portfolio management services in respect of an EEA UCITS scheme)5 in relation to complaints concerning non-MiFID business

Applies for eligible complainants

Applies for eligible complainants

Applies for eligible complainants

Applies for eligible complainants

Applies for eligible complainants

Does not apply4

incoming branch of an EEA firm in relation to complaints concerning MiFID business

Applies for eligible complainants

Does not apply

Applies for eligible complainants

Does not apply

Applies for eligible complainants

Does not apply45

5 incoming branch of an EEA UCITS management company in relation to complaints concerning collective portfolio management services in respect of a UCITS scheme

Applies for Unitholders

Applies for Unitholders

Applies for eligible complainants

Applies for Unitholders

Applies for eligible complainants

Does not apply

5 incoming EEA UCITS management company in relation to complaints concerning collective portfolio management services in respect of a UCITS scheme provided under the freedom to provide cross border services

Does not apply

Does not apply

Applies for eligible complainants

Does not apply

Applies for eligible complainants

Does not apply

incoming EEA firm providing cross-border services from outside the UK

Does not apply

Does not apply

Does not apply

Does not apply

Does not apply

Does not apply4

branch of an overseas firm (in relation to all complaints)

Applies for eligible complainants

Applies for eligible complainants

Applies for eligible complainants

Applies for eligible complainants

Applies for eligible complainants

Applies for eligible complainants4

payment service provider in relation to complaints concerning payment services

Applies for eligible complainants

Applies for eligible complainants

Applies for eligible complainants

Does not apply

Does not apply

Does not apply4

EEA branch of a UKpayment service provider in relation to complaints concerning payment services

Does not apply

Does not apply

Does not apply

Does not apply

Does not apply

Does not apply4

incoming branch of an EEAauthorised payment institution in relation to complaints concerning payment services

Applies for eligible complainants

Applies for eligible complainants

Applies for eligible complainants

Does not apply

Does not apply

Does not apply4

incoming EEAauthorised payment institution providing cross borderpayment services from outside the UK

Does not apply

Does not apply

Does not apply

Does not apply

Does not apply

Does not apply4621

6 21 electronic money issuer in relation to complaints concerning issuance of electronic money

Applies for eligible complainants

Applies for eligible complainants

Applies for eligible complainants

Does not apply

Does not apply

Does not apply

6 21 EEA branch of an authorised electronic money institution or an EEAbranch of any other UKelectronic money issuer in relation to complaints concerning issuance of electronic money

Does not apply

Does not apply

Does not apply

Does not apply

Does not apply

Does not apply

6 21incoming branch of an EEA authorised electronic money institution in relation to complaints concerning issuance of electronic money

Applies for eligible complainants

Applies for eligible complainants

Applies for eligible complainants

Does not apply

Does not apply

Does not apply

6 21incoming EEA authorised electronic money institution providing cross border electronic money issuance services from outside the UK

Does not apply

Does not apply

Does not apply

Does not apply

Does not apply

Does not apply

licensee

Applies for eligible complainants

Applies for eligible complainants (DISP 1.3.4 G to DISP 1.3.5 G do not apply)

Applies for eligible complainants (DISP 1.6.8 G does not apply)

Does not apply

Does not apply

Does not apply4

VJ participant

Applies for eligible complainants

Applies for eligible complainants (DISP 1.3.4 G to DISP 1.3.5 G do not apply)

Applies for eligible complainants (DISP 1.6.8 G does not apply)

Does not apply

Does not apply

Does not apply4

7 complaints relating to auction regulation bidding

Does not apply

Does not apply

Does not apply

Does not apply

Does not apply

Does not apply