Firms will have to report all complaints made to the Financial Conduct Authority, and not just complaints resolved after the close of the next business day as it currently is at present, the regulator has proposed.
In a complaints handling consultation paper, published today (12 December), the regulator proposes three key changes to improve firms’ complaints handling.
The FCA believes that if firms report all complaints to the regulator, transparency will improve around complaints handling.
The watchdog has also proposed extending the time period for dealing with a complaint from the end of the next business day after they have received the complaint to the end of three business days.
The FCA believes this will benefit consumers as it will allow firms to handle complaints more quickly and efficiently than if those complaints entered the firms’ more formal complaints processes.
The third proposal is to require firms to send a written communication to all consumers whose complaints are dealt with within the three business day period. They must state they have the right to refer the complaint to the Financial Ombudsman Service if the are unhappy with the outcome.
The FCA also said it will amend its rules to allow consumers to refer the complaint immediately after they receive a response, without having to wait for the current eight-week process to elapse.
The FCA is also consulting on amendments to the complaints handling rules to implement the Alternative Dispute Resolution Directive.
It is proposing to keep current time limits for referring complaints to the ombudsman service, as they comply with the directive and provide a sufficient level of consumer protection.
However, the rules will be amended so firms must tell consumers when they respond to complaints if the firm will consent to the ombudsman service considering a complaint made outside the relevant time limits.
In addition, the regulator is continuing its work to consider the case for a 15 year ‘long stop’ on complaints to the ombudsman service.
The regulator said implementing the directive in the way it is consulting on would not preclude the introduction of a ‘long stop’ should it be decided it was appropriate to do so in the future.
Christopher Woolard, director of policy, risk and research, said: “Consumers want a simple way to complain that does not leave them out of pocket. And they want to be assured that their concerns will be dealt with fairly and quickly.
“These proposed reforms will further improve the system, making it less bureaucratic for firms, easier for consumers and will provide us with improved intelligence on complaints.”
The consultation closes on 13 March 2015.
peter.walker@ft.com
