Dealing with complaints before they are referred to the Fos

  • To remind oneself of the basic procedures for complaints handling
  • To remember the importance of the approach of complaints handler
  • To learn about the challenges of tricky clients
  • To remind oneself of the basic procedures for complaints handling
  • To remember the importance of the approach of complaints handler
  • To learn about the challenges of tricky clients
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CPD
Approx.30min
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CPD
Approx.30min
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CPD
Approx.30min
Dealing with complaints before they are referred to the Fos

Financial services are diverse and complex, which inevitably leads to the occasional misunderstanding. Sometimes the client’s expectation is unrealistic, sometimes we mess up, and sometimes it seems the client is trying it on.

No matter how complaints arise, we are not judged on the fact they are aimed at us. What is important, however, is how we respond. Even though increasing numbers of complaints seem to be founded more on opportunism than genuine grievance, there are still many where the outcome can be influenced for the better by the way they are handled.

Handling complaints effectively means giving complainants a decent hearing and treating them fairly. We can use this to cement our relationship and prevent the client feeling the need to refer to the Financial Ombudsman Service (Fos), but we should be aiming higher. If we are listening properly we can prevent minor issues escalating, learn how clients see our business and uncover the causes of dissatisfaction that can be addressed to improve the general experience. 

Financial ombudsman

Although we are aiming to conclude the complaint without it being referred to Fos, we need to be aware the complainant always has that right. If this happens, the next best result is that our conclusion is upheld. On that basis, effective complaint handling needs to mirror the approach taken by Fos.

The ombudsman service tries to reach a fair and reasonable outcome for both the complainant and the company. The complaint will be allocated to an investigator who will initially try to bridge the gap between the complainant and the provider. If this is not successful they will formulate a judgement based on what they see as the facts of the case. This will take account of regulation, contract terms and good industry practice, but not necessarily be bound by them. 

As a service providing alternative dispute resolution they will occasionally consider that the circumstances of the rules are harsh and were not meant to cover a specific series of events. The investigator might look at wider circumstances to consider how the sale was made, what literature was provided, what the nature of the contract was, if there were any special terms, and generally whether the client was treated fairly. We need to be prepared to do the same.

Key Points

It is important how an adviser responds to a complaint

Advisers need to recognise when a complaint arises and trigger the complaints process quickly

The outcome of a complaint will be dependent on the complainant being satisfied they have been taken seriously

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