DISP 1.1 Purpose and application
Purpose
638This chapter contains rules and guidance on how respondents should deal promptly and fairly with complaints in respect of business carried on from establishments in the United Kingdom,11 by certain branches of firms in the EEA or by certain EEA firms carrying out activities in the United Kingdom under the freedom to provide cross border services.11 It is also relevant to those who may wish to make a complaint or refer it to the Financial Ombudsman Service.
Background
Details of how this chapter applies to each type of respondent are set out below. For this purpose, respondents include:
- (1)
persons carrying on regulated activities (firms),1340 providing payment services (payment service providers)8 providing electronic money issuance services (electronic money issuers)20 1340carrying on CBTL business (CBTL firms), 22providing credit information under the Small and Medium Sized Business (Credit Information) Regulations (designated credit reference agencies), or providing specified information under the Small and Medium Sized Business (Finance Platforms) Regulations (designated finance platforms)22 and which are8 covered by the Compulsory Jurisdiction; and1741
1818208 - (2) 1741
- (3)
persons who have opted in to the Voluntary Jurisdiction (VJ participants).
Application to firms
- (1)
Subject to DISP 1.1.5 R, this15 chapter applies to a firm in respect of complaints from eligible complainants concerning activities carried on from an establishment maintained by it or its appointed representative in the United Kingdom.
15 - (2)
For complaints relating to the MiFID business of a firm, the complaints handling rules and the complaints record rule:
- (a)
apply to complaints from retail clients and do not apply to complaints from eligible complainants who are not retail clients;
- (b)
also apply in respect of activities carried on from a branch of a UK firm in another EEA State; and
- (c)
do not apply in respect of activities carried on from a branch of an EEA firm in the United Kingdom.
- (a)
- (3)
9The complaints data publication rules do not apply in respect of activities carried on from a branch of an EEA firm in the United Kingdom or activities carried on by an EEA firm in the United Kingdom under the freedom to provide cross border services.11
- (4)
This chapter, except the complaints data publication rules, also applies to an incoming EEA AIFM for complaints from eligible complainants concerning AIFM management functions carried on for an authorised AIF or a UK ELTIF other than a body corporate that is not a collective investment scheme21 under the freedom to provide cross-border services.16
Where a firm has outsourced activities to a third party processor, DISP 1.1.3 R does not apply to the third party processor when acting as such, but applies to the firm which is taking responsibility for the acts and omissions of the third party processor in respect of the outsourced activities.
This chapter does not apply to:
- (1) 739
- (2)
[deleted]14
14 - (3)
an authorised professional firm in respect of expressions of dissatisfaction about its non-mainstream regulated activities; 15
16 - (4)
complaints in respect of auction regulation bidding;16 15
- (5)
a full-scope UK AIFM, small authorised UK AIFM or an incoming EEA AIFM, for complaints concerning AIFM management functions carried on for an AIF that is a body corporate unless it is a collective investment scheme21; and16
- (6)
a depositary, for complaints concerning activities carried on for an AIF that is21:
16- (a)
a body corporate unless it is a collective investment scheme21; or16
- (b)
another type of AIF unless it is:21
- (i)
an authorised AIF; or21
- (ii)
- (iii)
- (i)
- (a)
16References in DISP 1.1.5 R to a full-scope UK AIFM and small authorised UK AIFM carrying on AIFM management functions for an AIF that is a body corporate that is not a collective investment scheme21 include firms that are internally managed AIFs21.
14The complaints reporting rules and the complaints data publication rules do not apply to a credit union.
CREDS 9 sets out rules for credit unions in relation to reporting complaints.14
1414In relation to a credit union, the nature, scale and complexity of the credit union's business should be taken into account when deciding the appropriate procedures to put in place for dealing with complaints.
This chapter applies to the Society, members of the Society and managing agents, subject to the Lloyd's complaint rules.
An insurance intermediary, that is not also an insurer, must have in place and operate appropriate and effective procedures for registering and responding to complaints from a person who is not an eligible complainant.
[Note: article 10 of the Insurance Mediation Directive]
10The scope of this sourcebook does not include:
- (1)
a complaint about pre-commencement investment business which was regulated by a recognised professional body (those complaints will be handled under the arrangements of that professional body); or
- (2)
a complaint about the administration of an occupational pension scheme, because this is not a regulated activity (firms should refer complainants to the Pensions Advisory Service rather than to the Financial Ombudsman Service).
In relation to a firm's obligations under this chapter, references to a complaint also include an expression of dissatisfaction which is capable of becoming a relevant new complaint,1741 a relevant transitional complaint or a relevant new credit-related complaint.1741
21741Application to payment service providers
8This chapter (except the complaints record rule,9 the complaints reporting rules and the complaints data publication rules9) applies to payment service providers in respect of complaints from eligible complainants concerning activities carried on from an establishment maintained by it or its agent in the United Kingdom.
9- (1)
8In this sourcebook, the term payment service provider does not include full credit institutions (which are covered by this sourcebook as firms), but it does include small electronic money institutions.1340
13401340 - (2)
8Although payment service providers are not required to comply with the complaints record rule, it is in their interest to retain records of complaints so that these can be used to assist the Financial Ombudsman Service should this be necessary.
Application to electronic money issuers
1340This chapter (except the complaints record rule, the complaints reporting rules, and the complaints data publication rules) applies to electronic money issuers in respect of complaints from eligible complainants concerning activities carried on from an establishment maintained by it or its agent in the United Kingdom.
- (1)
1340In this sourcebook, the term electronic money issuer does not include credit institutions, credit unions or municipal banks (which will be carrying on a regulated activity if they issue electronic money and will be covered by this sourcebook as firms in those circumstances), but it does include small electronic money institutions and persons who meet the conditions set out in regulation 75(1) or regulation 76(1) of the Electronic Money Regulations.
- (2)
Although electronic money institutions are not required to comply with the complaints record rule, it is in their interest to retain records of complaints so that these can be used to assist the Financial Ombudsman Service should this be necessary.
Application to UCITS management companies
11For complaints related to collective portfolio management services of a UK UCITS management company for a UCITS scheme or an EEA UCITS scheme, DISP 1.1.3R (1) applies, except where modified as follows:
- (1)
the consumer awareness rules, complaints handling rules and complaints record rule apply in respect of complaints from Unitholders rather than from eligible complainants; and
- (2)
the consumer awareness rules, the complaints handling rules and the complaints record rule, as modified in (1), also apply where the services are provided from a branch in another EEA State (and any reference to respondent in the consumer awareness rules includes such a branch).
For complaints related to collective portfolio management services of an EEA UCITS management company for a UCITS scheme, DISP 1.1.3R (1) applies, except where modified as follows:
- (1)
where the services are provided from a branch in the United Kingdom, the consumer awareness rules, complaints handling rules and complaints record rule apply in respect of complaints from Unitholders rather than from eligible complainants; and
- (2)
this chapter, except the consumer awareness rules, complaints handling rules, complaints record rule and complaints data publication rules, also applies to an EEA UCITS management company providing services in the United Kingdom under the freedom to provide cross border services.
Application to CBTL firms18
This chapter (except the complaints record rule, the complaints reporting rules and the complaints data publication rules) applies to CBTL firms in respect of complaints from eligible complainants 19concerning activities carried on from an establishment maintained in the United Kingdom.
19- (1)
In this sourcebook, the term CBTL firm does not include a firm. A firm carrying on CBTL business is covered by this sourcebook as a firm.
- (2)
CBTL firms are reminded of their obligation to retain information relevant to demonstrating the firm’s compliance or non-compliance with the requirements of Schedule 2 to the MCD Order.
Application to designated credit reference agencies
20This chapter (except the complaints record rule, the complaints reporting rules and the complaints data publication rules) applies to a designated credit reference agency in respect of complaints from eligible complainants concerning activities carried on from an establishment maintained by it or its agent in the United Kingdom.
20Although designated credit reference agencies are not required to comply with the complaints record rule, they must retain records in accordance with regulation 24 of the Small and Medium Sized Business (Credit Information) Regulations and these can be used to assist the Financial Ombudsman Service should this be necessary.
Application to designated finance platforms
22This chapter (except the complaints record rule, the complaints reporting rules, and the complaints data publication rules) applies to a designated finance platform in respect of complaints from eligible complainants concerning activities carried on from an establishment maintained by it or its agent in the United Kingdom.
22Although designated finance platforms are not required to comply with the complaints record rule, they must retain records in accordance with regulation 21 of the Small and Medium Sized Business (Finance Platforms) Regulations and these can be used to assist the Financial Ombudsman Service should this be necessary.
FSAVC Review
Where the subject matter of a complaint is subject to a review directly or indirectly under the terms of the policy statement for the review of specific categories of FSAVC business issued by the FSA on 28 February 2000, the complaints resolution rules, the complaints time limit rules, the complaints record rule,9 the complaints reporting rules and the complaints data publication rules9 will apply only if the complaint is about the outcome of the review.
9Consumer redress schemes
12Where the subject matter of a complaint falls to be dealt with (or has properly been dealt with) under a consumer redress scheme, the complaints resolution rules, the complaints time limits rules, the complaints record rule and the complaints reporting rules do not apply.
20Exemptions for firms, payment service providers, electronic money issuers, designated credit reference agencies and designated finance platforms221340
- (1)
A firm, payment service provider20, electronic money issuer, 22designated credit reference agency20 or designated finance platform22 falling within the Compulsory Jurisdiction which does not conduct business with eligible complainants and has no reasonable likelihood of doing so, can, by written notification to the FCA , claim exemption from the rules relating to the funding of the Financial Ombudsman Service, and from the remainder of this chapter.
134081340 - (2)
Notwithstanding (1):11
- (a)
the complaints handling rules and complaints record rule will continue to apply in respect of complaints concerning MiFID business; and11
- (b)
the consumer awareness rules, the complaints handling rules and the complaints record rule will continue to apply in respect of complaints concerning the provision of collective portfolio management services.11
- (a)
- (3)
The exemption takes effect from the date on which the written notice is received by the FCA and will cease to apply when the conditions relating to the exemption no longer apply.
Application to VJ participants1741
This chapter (except the complaints record rule,9 the complaints reporting rules and the complaints data publication rules)9 applies to VJ participants for complaints from eligible complainants as part of the standard terms.
9Although VJ participants are not required to comply with the complaints record rule, it is in their interest to retain records of complaints so that these can be used to assist the Financial Ombudsman Service should it be necessary.
1741Outsourcing of complaint handling
- (1)
This chapter does not prevent:
- (a)
the use by a respondent of a third party administrator to handle or resolve complaints (or both); or
- (b)
two or more respondents arranging a one-stop shop for handling or resolving complaints (or both) under a service level agreement.
- (a)
- (2)
These arrangements do not affect respondents' obligations as set out in DISP or the provisions relating to outsourcing by a firm set out in SYSC 8 and SYSC 13.
Further guidance on the application of this chapter is set out in the table in DISP 1 Annex 2.