Complaints
Complaints should be made to the firm who the complainant thinks is responsible for causing the complaint. That may be either the IFA or the product provider.
Complaints procedure
The FSA rules require each authorised firm to have an adequate complaints system which is set out and conveyed to customers so that customers are aware how to complain to the firm and how that complaint will be dealt with when they do complain. Details of the firm’s complaints system should be advised to the client when they first start doing business with the client and should be displayed in their branch offices and again sent to the complainant when they first make a complaint.
Every member of staff has to be aware of the complaints system at lest to the extent that they can advise a customer on where to direct their complaint.
The FSA rules are tied up to the FOS rules where the FOS uses the definition of eligible complainant.
An eligible complainant is
- a private individual
- a business with an annual turnover of less than £1 million
- a charity with an annual income of less than £1 million
- a trust with a net asset value of less than £1 million
An intermediate customer or market counterparty is not an eligible complainant.
A complaint is an expression of dissatisfaction claiming financial loss, material distress or material inconvenience. The complaint can be made either in writing or verbally and a firm must deal with both.
Complaints must be acknowledged in writing within five business days. If the complaint has not been answered within four week (20 business days) then a holding response must be provided. The complaint must be answered with a final response within 8 weeks (40 business days). The final response must contain a paragraph advising the complainant that if they are still dissatisfied, they can go to the FOS. The final response letter should enclose a copy of a booklet from the FOS which describes how a complaint can be made to the FOS.
Complaint records must be kept for three years.