RegulationMar 27 2013

Complaints process against regulators put in place

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The cost of running the complaints scheme against the regulators will ultimately be paid by the industry, the government has decided.

* The FCA and the PRA appoints the directors of FSCS on terms that ensure they run the Financial Services Compensation Scheme independently of the FCA and the PRA. So the FCA and the PRA would not intervene in individual claims. If a claimant is unhappy about a decision made by the FSCS, they may complain by following the complaints policy set out on the FSCS’s website. 

* The regulators are in the process of agreeing appropriate service level arrangements to ensure an efficient and cooperative approach. When an agreement is finalised the document will be published on each of the regulators’ websites.

* The regulators consider there is value in some complaints being dealt with at a local level. Although the fast track process does not exist in the new scheme by name, the option to deal with complaints at a local level does.

* Although being dealt with at a local level, a complaint will be investigated by a person who is not the subject of the complaint and is suitably senior.

* Who qualifies as a suitably senior staff member will be assessed on a case-by-case basis. The FSA will have processes in place to ensure an appropriate person will carry out the investigation. The arrangements for investigations, along with the management of the overall complaints process, is subject to independent review by the Complaints Commissioner.

* The final reports made by the Complaints Commissioner after the conclusion of an investigation, where a complaint has been upheld, will be published both on the OCC’s website and on the respective regulators’ website and be accessible to anyone who wants to view them.

* Compensatory payments for a scheme of this kind (which is similar to other public sector ombudsman schemes) are unenforceable (which is the reason why any payments are described as being made on an ex gratia basis). It is also the reason why the Complaints Commissioner can only recommend but not instruct the regulators to make a payment. However, we note that the FSA has, to date, never declined to make a payment that has been recommended by the commissioner.

http://www.fsa.gov.uk/static/pubs/policy/ps13-07.pdf