Investment and risk

The FCA requires every authorised firm to have a written complaints procedure and to publicise it. The FSMA established the Financial Ombudsman Service (FOS) for all complaints against authorised persons about regulated activities and matters previously dealt with by the Ombudsman schemes it replaced. The FOS is compulsory for all authorised firms and there is a voluntary jurisdiction for firms that do not currently need authorisation e.g. National Savings.

Complaints procedure

A person who wants to complaint to an authorised firm should make firstly to the firm that provided the product or service.

Eligible complainants are:

Eligible complainants are:

Private individu...

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...p>Informs the complainant that they have the right to refer the complaint to the Financial Ombudsman Service (‘FOS’); and

Encloses a copy of the Financial Ombudsman Services explanatory leaflet.

Where the complaint is upheld, the firm must make an offer of appropriate compensation and/or remedial action. If the complainant accepts this, it should be the end of the matter. If the complainant thinks this is inadequate or the complaint is rejected, he or she can still refer the matter to the FOS.

Firms have to supply complaints statistics to the FCA twice a year and retain their complaints records for at least three years or, in the case of MiFID business, five years.

The FOS was established under the FSMA as the ombudsman for all complaints against authorised persons about regulated activities and certain activities previously covered by the schemes that it replaced. The objective behind FOS is to ensure that disputes are settled comparatively quickly and with the minimum of formality. All authorised firms have to tell complainants of their right to refer their complaint to the FOS.

There is a panel of ombudsmen and a chief ombudsman. Only eligible complainants can refer complaints to the FOS.

The FOS is funded by a general levy on all participating firms. There is also a flat r...

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...s £150,000 plus the complainant’s costs and interest, from the date of the award and when any recoverable costs were incurred. The FOS can recommend to firms that they pay higher amounts, but these recommendations are not binding on the respondent. The Ombudsman also has the power to order firms to take steps such as transfer a pension, offer life cover etc. There is no financial limit on the cost of the steps that can be required.

The FOS cannot award the respondent costs against the complainant. Firms must not seek to charge their customers for the cost of bringing a complaint to themselves or the FOS.

The FSCS was established under the FSMA to provide compensation to claimants where authorised firms cannot meet claims against them in connection with their authorised activities.

There are a number of organisations and persons who are no...

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...y to safeguard the policyholders of insurance companies in financial difficulties. In particular, it has a duty to try and secure the continuity of insurance for long term policyholders by transferring business to another insurer.