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DISP 1.3 Complaints handling rules

DISP 1.3.1RRP

Effective and transparent procedures for the reasonable and prompt handling of complaints must be established, implemented and maintained by:

  1. (1)

    a respondent; and

  2. (2)

    a branch of a UK firm in another EEA State.

[Note: article 10 of the MiFID implementing Directive and article 6(1) of the UCITS implementing Directive]5

DISP 1.3.1ARRP

416These procedures must ensure that a complaint may be made free of charge.

[Note: article 6(3) of the UCITS implementing Directive]5

Procedures for UCITS management companies

DISP 1.3.1BRRP

5A UK UCITS management company must ensure that the procedures it establishes under DISP 1.3.1 R for the reasonable and prompt handling of complaints require that:

  1. (1)

    there are no restrictions on Unitholders exercising their rights in the event that the UCITS is authorised in an EEA State other than the United Kingdom; and

  2. (2)

    Unitholders are allowed to file complaints in any of the official languages of the Home State of the UCITS scheme or EEA UCITS scheme or of any EEA State to which a notification has been transmitted by the competent authority of the scheme's Home State in accordance with article 93 of the UCITS Directive.

[Note: article 15 of the UCITS Directive]

DISP 1.3.2GRP

These procedures should:

  1. (1)

    allow complaints to be made by any reasonable means; and

  2. (2)

    recognise complaints as requiring resolution.

DISP 1.3.3RRP

In respect of complaints that do not relate to MiFID business, a respondent must put in place appropriate management controls and take reasonable steps to ensure that in handling complaints it identifies and remedies any recurring or systemic problems, for example, by:

1
  1. (1)

    analysing the causes of individual complaints so as to identify root causes common to types of complaint;

  2. (2)

    considering whether such root causes may also affect other processes or products, including those not directly complained of; and

  3. (3)

    correcting, where reasonable to do so, such root causes.

DISP 1.3.4G

A firm should use the information it gains from dealing with complaints that relate to MiFID business in accordance with this chapter to inform its compliance with its obligations to monitor the adequacy and effectiveness of its measures and procedures to detect and minimise any risk of compliance failures (SYSC 6.1).

DISP 1.3.5G

A firm should have regard to Principle 6 (Customers' interests) when it identifies problems, root causes or compliance failures and consider whether it ought to act on its own initiative with regard to the position of customers who may have suffered detriment from, or been potentially disadvantaged by such factors, but who have not complained.