Revisions proposed to simplify complaints against the regulators
21st July 2020
The Financial Conduct Authority (FCA), the Prudential Regulation Authority and the Bank of England have issued a joint consultation paper which proposes making the shared statutory scheme for complaints against the regulators more accessible.
The FCA’s consultation paper CP20/11*, entitled Complaints against the Regulators, looks to review the statutory framework for the Joint Complaints Scheme which is set out in part 6 of the Financial Services and Markets Act 2000. The legislation requires the FCA to maintain a scheme for the investigation of complaints arising in connection with the exercise of, or failure to exercise, any of its ‘relevant functions’.
The consultation paper puts forwards as series of revisions for simplifying the scheme which would make it more efficient and user friendly. In particular CP20/11 proposes:
- The introduction of diagrams to help users navigate the process;
- addressing users directly (you) and refer to the regulators directly (we/us);
- use plain language as fully as possible;
- introducing a more detailed description of the regulator’s approach to ex-gratia compensatory payments (ie goodwill payments) for distress, inconvenience and financial loss to help complainants understand what they can and cannot expect from the scheme.
Members may access CP20/11 by clicking here.
The consultation period closes on 14th September 2020. BIBA will be a submitting an official response to this paper and members who would like their views to be taken into consideration as part of this process should send them to David Sparkes at [email protected] by Monday 7th September.
The FCA said it would take into consideration any feedback received and would aim to bring the new scheme into force as soon as reasonably practicable. The regulator is proposing to apply it to new complaints received after the revised scheme comes into force. The existing scheme would be applied to complaints received before that date.
BIBA members’ compliance and regulation queries should be directed to: [email protected].