PS15/19: Improving complaints handling, feedback on CP14/30 and final rules
The new requirements for firms are:
• Extending the ‘next business day rule’, firms will be permitted to handle complaints less formally, there will be no requirement to send a final response letter, and they will be able to close a complaint three business days after the date of receipt
• All complaints become reportable, including those handled by the close of three business days after the firm receives them
• Firms will be required to raise consumer awareness of the ombudsman service, by sending a ‘summary resolution communication’ following the resolution of complaints handled by the close of the third business day after receipt
• New rules limiting the cost of calls consumers make to firms to a maximum ‘basic rate’, including all post-contractual calls and all complaints calls
• The FCA will have an improved ‘complaints return’ which requires firms to send them data twice a year on the number of complaints they receive, this will then be made public so consumers can compare firms
Who is affected?
The new rules affect all financial services firms. All FCA-regulated firms must have complaints-handling processes in place and comply with the FCA rules and guidance on how to respond with complaints promptly and fairly.
The objective of the new rules is to ultimately benefit the consumers who wish to complain to financial services firms by ensuring that complaints are handled more quickly, easily and transparently and it will also allow financial services firms more time to resolve complaints less formally.
Important Dates
• The rules for complaints handling come into force on 30 June 2016.
• The rules on call charges come into force on 26 October 2015.
Complaints Handling
The current regulations allow the ‘next business day’ rule, permitting financial services firms to handle