The Financial Conduct Authority has been criticised for taking too long to handle complaints.
In its annual report, the Financial Services Complaints Commissioner, the watchdog's watchdog, said it has been raising concerns about delays for more than a year.
The commissioner has said there is now a backlog and while resources have been increased to handle this, it still exists.
Antony Townsend, the complaints commissioner, said: “In my last annual report published in July 2016, I highlighted the importance of the FCA’s complaints team having the resources it requires to deal with a rising workload (a concern which I had indicated to the FCA board earlier in 2016), and stressed the importance of meeting deadlines.
“Although in the last few months the FCA has strengthened its complaints team significantly, and has made some progress in tackling delays, I have to report that in a large number of the cases with which I dealt in 2016/17, I had to comment not only upon the substantive issue which had given rise to the complaint, but also upon the delays in handling the complaint.”
Mr Townsend also reported that the FCA had a tendency to adopt a “defensive position”, especially in complex cases.
He said he had found instances where the FCA demonstrated a “lack of curiosity” in investigating the underlying issues of the complaint, a “lack of candour” in acknowledging error, and a failure by the regulator to “put itself in the shoes of the complainant”.
Mr Townsend also pointed out that he made a number of recommendations for improvement in 2015 and while the FCA had said it would consult on these, this has not yet happened but he said he had been assured work is progressing on this.
In response to the commissioner’s findings, the FCA said: “The commissioner is correct in the observation that it was inevitable that the backlog that had built up would take time to work through the system, however we are satisfied that we have been able to provide sufficient resources to improve the matter.
“This is evidenced by the number of complaints in progress, which has reduced from over 300 at the height during 2016–17 to fewer than 60 complaints by the end of the period.”
On the issue of the FCA’s “defensive position”, the regulator said it notes this observation and will “renew” its efforts to make sure those who bring a complaint are treated in an “open, empathetic and honest manner”.
In 2016/17 the Complaints Commissioner received 138 complaints about the FCA, up from 82 in the previous year.
Most of these – 71 – related to a perceived failure to regulate properly.
Of the 116 complaints concluded during the year, in 47 the FCA’s decision was fully upheld and in 61 its decision was upheld but suggestions for improvement were made.
In only two instances was the FCA’s decision completely overturned.
damian.fantato@ft.com
