Complaints Return

DISP-defined reporting periods are determined by each firm's accounting reference date; and reports need to be submitted twice a year. (You can view your firm's reporting schedule on Firms Online – Regulatory Reporting). However the reporting periods for Credit Unions (covered in CRED) run from 1st April to 31st March, so these reports only need to be submitted once a year.

Firms covered by DISP need to use the electronic complaints return on Firms Online. However Credit Unions need to use the standard paper form.

Electronic complaints returns need to be submitted to us within 30 business days of the end of the relevant reporting period; whilst Credit Unions have one month to submit their paper returns.

The firm will be in breach of FSA rules. This may result in a fine or other action being taken against the firm.

A complaint is defined as any oral or written expression of dissatisfaction, whether justified or not, from or on behalf of an eligible complainant about the firm's provision of, or failure to provide, a financial service.

The definition of an eligible complainant is given in DISP 2.7. To summarise, it is those who have (or potentially have) a customer relationship with the firm who are either:

1. a private individual;
2. a business with annual turnover less than £1m when the complaint was made;
3. a charity with an annual turnover of less than £1m when the complaint was made; or
4. a trustee of a trust that had a net asset value of less than £1m when the complaint was made.
   

These complaints should be recorded under small business complaints.

DISP 1.10.9R requires that a firm must give us details of a single point of contact for complainants. If your firm has more than one complaints handling area, you should give us details of the most appropriate initial contact point for consumers.

DISP 1.10 sets out the record keeping and reporting requirements. These requirements apply only to complaints received from eligible complainants:

• is made by, or on behalf of, an eligible complainant; and
• relates to an activity of the firm that comes under the jurisdiction of the Financial Ombudsman Service; and
• involves an allegation that the complainant has suffered, or may suffer:



• financial loss, and/or
• material distress, and/or
• material inconvenience

which have not been resolved by close of business on the business day following receipt of the complaint. (See also DISP 1.5)

Submitting a complaints return is one of the requirements on firms set by the Handbook Chapter, DISP (Dispute Resolution: Complaints). However there are certain types of firm that DISP does not apply to:

1. Lloyds of London and its members (though see DISP 1.11);
2. a UCITS qualifier;
3. an authorised professional firm insofar as its non mainstream regulated activities are concerned;
4. Credit Unions (since they are not subject to DISP – however they do have to follow somewhat similar requirements of complaint handling and reporting as set out in CRED).

All other types of firm are covered by DISP, so have to submit complaints returns, unless they claim an exemption on the basis that they do not conduct any business with eligible complainants (i.e. complainants eligible to refer their complaints to FOS) and have no reasonable likelihood of doing so (see DISP 1.1.12).

Yes.

Yes.

If your firm doesn't have any reportable complaints then you should check the ‘nil return’ box of the complaints return and go through the submission process as normal.

Firms should record all complaint cases during the reporting period and apply the categorisation that best reflects the original complaint, even where the complaint has not been, or is unlikely to be, upheld.

Firms should include any payments made to customers in relation to a complaint, whether upheld or not, or whether the complaint has been adjudicated by the Financial Ombudsman Service. The redress box should include items such as ex-gratia payments.

See the question 'Does every firm have to send the FSA a complaints return?' above.

This information is in the FSA Handbook, DISP 1 Ann 1R.

A new complaints return comes into force for periods ending on or after 1 August 2009.

Full details are given in DISP 1.10.7R. In short, a complaint is deemed closed if:

1. the firm has sent a final response; or
2. the complainant has indicated in writing that they accept the firm’s earlier response; or
3. the complainant has failed to respond to the firm within eight weeks of the initial written response.

A complaint is outstanding if it has not been closed, as defined above, on the relevant date (either at the beginning or end of the reporting period).

A firm should treat such a complaint as:

• received in reporting period P;
• outstanding at the end of reporting period P;
• outstanding at the start of reporting period P+1; and
• closed during period P+1 in less than 4 weeks.
  

Initially, the complaints contact details will be made public, as set out on the return. We will also draw on the trends and issues that emerge from the data as part of our wider public dialogue. However, we would consult with the industry and others before publishing data on a firm-by-firm basis.