CONRED 4.7 Provisions relating to communications with consumers

1Whenever a firm is required by a provision of this chapter to send a letter in a form set out in a specified Annex in CONRED 4, it must:

1. (1)

   do so enclosing any relevant documents or pre-paid envelopes which the firm is instructed to enclose in the Annex with that letter;

2. (2)

   where the letter is a redress determination, enclose the Financial Ombudsman Service leaflet and bespoke referral form in respect of such determination;

3. (3)

   complete the letter by following the instructions in the standard form set out in the specified Annex; and

4. (4)

   comply with any instructions in the specified Annex to insert, delete, select or complete text.

1All letters to consumers required under this chapter must be printed on the letterhead of the firm and dispatched by recorded delivery mail.

1. (1)

   Where a firm becomes aware that the contact details it holds for a consumer are out of date, it must take all reasonable steps to obtain up-to-date contact details and, where appropriate, resend any letter and repeat the steps to contact the consumer, required by this chapter.

2. (2)

   If, having complied with (1), a firm is unable to contact a consumer, it need not take any further action pursuant to this chapter in relation to that consumer unless (3) applies.

3. (3)

   If, in reliance on (2), the firm has ceased taking action but subsequently becomes aware of up-to-date contact details for that consumer within 12 months of the scheme effective date, the firm must, where appropriate, resend any letter and repeat the steps to contact the consumer required by this chapter.

4. (4)

   Where a firm is required in (1) and (3) to resend any letter and repeat the steps to contact the consumer, required by this chapter:

   1. (a)

      it must do so even where it has made a redress determination pursuant to CONRED 4.3.8R or CONRED 4.4.20R; and

   2. (b)

      such redress determination is void.

5. (5)

   Where a firm is resending a letter and repeating steps pursuant to (3), each applicable deadline for those actions by the firm is extended according to the length of the delay incurred by the application of (2).

1. (1)

   1Where a firm becomes aware that the contact details it holds for a firm that it has tried to contact pursuant to CONRED 4.3.5R, CONRED 4.3.14(c)R and (d), or CONRED 4.4.14R (‘other firm’) are out of date, it must take all reasonable steps to obtain up-to-date contact details and, where appropriate, resend any letter and repeat the steps to contact the other firm as required by this chapter.

2. (2)

   If, having complied with (1), a firm is unable to contact the other firm, it need not take any further action pursuant to this chapter in relation to that firm unless (3) applies.

3. (3)

   If, in reliance on (2), the firm has ceased taking action but subsequently becomes aware of up-to-date contact details for that firm within 12 months of the scheme effective date, the firm must, where appropriate, resend any letter and repeat the steps to contact the firm required by this chapter.

4. (4)

   Where a firm:

   1. (a)

      has already made a redress determination pursuant to CONRED 4.3.8R or CONRED 4.4.20R; and

   2. (b)

      obtains further information from the other firm within 12 months of the scheme effective date which means that the firm has sufficient information to determine, as applicable, the matters in CONRED 4.3.5R(1) or to calculate redress using the BSPS calculator,

   such redress determination is void and the firm must take the remaining actions in relation to the relevant consumer’s case as if the redress determination had not been made.

5. (5)

   Where a firm is resending a letter and repeating steps pursuant to (1) or (3), or where (4) applies, each applicable deadline for those actions by the firm is extended according to the length of the delay incurred by the application of (2).

1When taking reasonable steps to ascertain missing information and when they contact a consumer a firm must:

1. (1)

   only make requests for information that are necessary for assessing compliance with the suitability requirements, the causation question or for the redress calculation using the BSPS calculator and which the consumer can reasonably be expected to provide;

2. (2)

   exercise sensitivity when requesting information about a consumer’s personal circumstances;

3. (3)

   ensure the consumer understands what information they have been asked to provide and in what format;

4. (4)

   only ask for information that is likely to be readily accessible to the consumer (and obtain the consumer’s authority to approach third parties for information on their behalf);

5. (5)

   allow the consumer at least 14 days to respond; and

6. (6)

   make clear why the firm is asking for the information and the consequence if the information is not provided.

1A firm must not make any communication to a consumer which seeks to influence, for the benefit of the firm, the outcome of the steps taken in this chapter, either by seeking to influence the content of information provided by the consumer in response to the firm’s requests made under this chapter or otherwise.

1Where a firm is required to contact a consumer under a provision of these rules whom the firm knows to be or becomes aware is deceased, it must take all reasonable steps to instead communicate with:

1. (1)

   a personal representative of the consumer’s estate; or

2. (2)

   a beneficiary or beneficiaries of their estate or pension.

1The provisions of CONRED 4.7.2R also apply in respect of a firm’s communications with persons referred to in CONRED 4.7.7R.