The complaints commissioner has asked the FCA to work more closely with Fos and to examine some of its systems after he looked into two complaints.
According to a decision dated 28 July but only just published, Antony Townsend reviewed a complaint by someone who was told to pay a £250 late administration fee in respect of two firms after missing the reporting deadline for submitting the retail mediation activity reports return.
The complainant claimed the deadline was missed because he or she – the complainant’s gender is not disclosed – was relying on an automatically generated email reminder from the FCA and a technical fault at the regulator prevented this from arriving.
Mr Townsend rejected the complaint, but said: “I can understand why you feel that the FCA should take some responsibility for its systems failure and be sympathetic to your position, particularly given your previous record of compliance and that you acted promptly as soon as the problem became clear.
“I have, however, recommended that the FCA properly expresses regret for its shortcomings, and that there should be a system for considering how to deal with any future instances of failures to issue reminders.”
He suggested that any future system could involve a grace period of a few working days or a modest discount if a reminder was not sent.
In a separate decision, he urged the FCA to work closer with Fos.
This followed a complaint to the FCA, in which the complainant wanted the FCA to investigate an unnamed bank’s behaviour, after the bank successfully stopped the ombudsman’s review of a complaint against it.
The FCA did not investigate, which initiated a complaint against the FCA. However, Mr Townsend rejected the complaint because he said the FCA was correct not to consider the complaint against Fos.
However, he said there was “strong evidence” the complainant was “badly treated” by the bank and that it was possible other customers of that bank were at risk of similar treatment.
He said: “I therefore urge the FCA to look at this matter, in conjunction with Fos, to ensure these kinds of circumstance do not recur.”
A spokesman for the FCA said it had already discussed with Fos the issues regarding the bank customer complaint. She pointed out that, as the commissioner had stated in his decision, the regulator has accepted his recommendations on the issue of automated email system failures.
Adviser view
Dennis Hall, chief executive of London-based Yellow Tail Financial Planning, said: “Reminder systems are a good idea and I am usually triggered into action by them, so I imagine we would also have fallen foul without it.
“If the FCA has a system in place that has failed, they should hold their hands up and admit to being partially at fault.”
