Complaints Commissioner criticises FCA's handling of 'awkward' cases

Complaints Commissioner Antony Townsend has said that although the FCA deals with the majority of complaints competently, he has "seen examples of an unwillingness to face up to and admit shortcomings, and delays in dealing with 'awkward' cases".

Related topics:  Finance News
Rozi Jones
20th July 2016
FCA
"We will be considering these suggestions alongside other work that we have underway to ensure that the Scheme and our application of it is continuously improving."

He described the FCA as "introspective and defensive" and added that there has "been a tendency to find reasons for excluding cases from the Complaints Scheme in circumstances where, in my view, they should not have been excluded".

Additionally, Townsend says he has seen a "small but significant number" of cases where the regulator has shown insufficient curiosity in pursuing complaints, an inadequate explanations of decisions, and unnecessary delays in the handling of complaints.

The Commissioner also highlighted a "gap in the current regime" where cases dealt with the issue of unregulated products offered by regulated firms.

In such cases, the complainant considered that the regulator should take action, and assumed they had protections which "do not, in fact, exist".

The Commissioner has urged the FCA to consider changing current rules to ensure that regulated firms make it clear they are supplying an unregulated product which is not underpinned by the protections of the Financial Ombudsman and FSCS.

In response, the FCA said: "In his report, the Commissioner has made some important observations which we take seriously. Separately, the Commissioner has also suggested improvements to the current scheme. We will be considering these suggestions alongside other work that we have underway to ensure that the Scheme and our application of it is continuously improving. We, together with the PRA and the Bank of England, have committed to review the Complaints Scheme and intend to conduct a public consultation on any proposed changes later in 2016.

"We continually aim to improve how satisfied complainants are with the way they are treated when they make a complaint. Whatever the eventual outcome of the complaint, we want complainants to feel that the issue they have raised has been fully and fairly considered, that they have been kept informed and treated with respect. The Commissioner’s scrutiny and recommendations will help us to achieve this."

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