FSA acts on complaints handling
by Gill Montia
Story link: FSA acts on complaints handling
The Financial Services Authority (FSA) is proposing to increase the limit on awards made by the Financial Ombudsman Service from £100,000 to £150,000.
The initiative forms part of a package of measures intended to drive up standards in complaints handling across the financial services sector.
The regulator says it wants more firms to resolve complaints promptly and fairly, and its other proposals include:
Requiring firms to identify a senior individual responsible for complaints handling.
The abolition of the “two-stage” complaints handling rule to incentivise firms to resolve complaints fairly the first time.
Underlining the requirement for firms to carry out root cause analysis, by identifying and remedying any recurrent or systemic problems with complaints, and to take action where appropriate.
Additional guidance in relation to taking account of ombudsman decisions and previous customer complaints, and learning from the outcome.
The FSA’s director of conduct policy, Sheila Nicoll, says: “Good complaints handling standards should be the rule not the exception and complaints handling forms a key part of our intensive and intrusive approach to supervise how firms deal with their customers.”