SIFA 11.1 How to handle a complaint
There are many reasons why clients complain to firms. However, not all problems are grounds for complaint (e.g. poor investment performance alone is not normally grounds for a complaint). Typically, complaints arise where:
- (1)
a firm makes unexpected or excessive charges;
- (2)
a firm does not draw attention to a particularly strict condition in a contract;
- (3)
a firm does not give a client adequate notice about changes to a contract;
- (4)
a client loses money because of a firm's slow administration; or
- (5)
a firm does not warn a client adequately about the risks of a product.
When and where should you publicise your procedures?
The requirements are as follows:
- (1)
You must display a notice stating that the FOS covers your firm. The notice should be displayed in all of your branches or offices to which your customers have access.
- (2)
At or immediately after the point of sale, your firm must refer your clients in writing to the availability of your internal complaint handling procedures - for example, in your terms of business.
- (3)
If you receive a complaint (unless it is resolved by close of business the next day) or receive a request for a copy of the procedures, you must supply a copy of the complaint handling procedures to the complainant.
- (4)
All of your employees should be aware of the procedures.
How quickly do you need to deal with a complaint?
The steps are explained in more detail below:
Step 1 |
Within five business days |
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- send a copy of your internal complaints procedures; and - inform them who will be handling the complaint. |
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Step 2 |
Within four weeks Send a final response with a copy of leaflet regarding FOS covering: |
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- A summary of the complaint - Details of any offer made - Right for your client to go to FOS - A summary of your investigation - Time limit on any offer made - Six-month time limit for referrals to FOS (It should be a separate document and written in plain English) |
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Or send a holding response |
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Explaining why you are not yet in a position to resolve the complaint and indicating when you will make further contact with the client. |
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Step 3 |
Within eight weeks Send a final response |
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As per the details in step 2 above |
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Or a response explaining: |
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- Why you are not able to respond - When you expect to provide a final response - Explain that client is entitled to refer the complaint to FOS if unhappy with the delay - Reasons for the delay - Give copy of leaflet regarding FOS - Six-month time limit for referrals to FOS |
Exception to the rules: quick resolution of complaints
Where are the relevant Handbook sections?
Complaints handling procedures are explained fully in chapter 1 of the Dispute Resolution sourcebook (DISP). The sections cover:
- (1)
the general and additional requirements: DISP 1.2;
- (2)
additional requirements for internal complaint handling procedures: DISP 1.3;
- (3)
the time limits for dealing with a complaint: DISP 1.4; and
- (4)
who should deal with a complaint: DISP 1.2.16 R.