DISP 1.3 Complaints handling rules

These procedures should:

1. (1)

   allow complaints to be made by any reasonable means; and

2. (2)

   recognise complaints as requiring resolution.

416These procedures should, taking into account the nature, scale and complexity of the respondent's business, ensure that lessons learned as a result of determinations by the Ombudsman are effectively applied in future complaint handling, for example by:

1. (1)

   relaying a determination by the Ombudsman to the individuals in the respondent who handled the complaint and using it in their training and development;

2. (2)

   analysing any patterns in determinations by the Ombudsman concerning complaints received by the respondent and using this in training and development of the individuals dealing with complaints in the respondent; and

3. (3)

   analysing guidance produced by the FSA , other relevant regulators and the Financial Ombudsman Service and communicating it to the individuals dealing with complaints in the respondent.

4The processes that a firm should have in place in order to comply with DISP 1.3.3 R may include, taking into account the nature, scale and complexity of the firm's business including, in particular, the number of complaints the firm receives:

1. (1)

   the collection of management information on the causes of complaints and the products and services complaints relate to, including information about complaints that are resolved by the firm by close of business on the business day following its receipt;

2. (2)

   a process to identify the root causes of complaints (DISP 1.3.3 R (1));

3. (3)

   a process to prioritise dealing with the root causes of complaints;

4. (4)

   a process to consider whether the root causes identified may affect other processes or products (DISP 1.3.3 R (2));

5. (5)

   a process for deciding whether root causes discovered should be corrected and how this should be done (DISP 1.3.3 R (3));

6. (6)

   regular reporting to the senior personnel where information on recurring or systemic problems may be needed for them to play their part in identifying, measuring, managing and controlling risks of regulatory concern; and

7. (7)

   keeping records of analysis and decisions taken by senior personnel in response to management information on the root causes of complaints.

In respect of complaints that relate to MiFID business, a firm should put in place appropriate management controls and take reasonable steps, in the same way as for complaints that do not relate to MiFID business (see DISP 1.3.3 R and DISP 1.3.3B G), in order to detect and minimise any risk of compliance failures (SYSC 6.1) and to comply with Principle 6 (Customers' interests).4

4Where a firm identifies (from its complaints or otherwise) recurring or systemic problems in its provision of, or failure to provide, a financial service, it should (in accordance with Principle 6 (Customers' interests) and to the extent that it applies) consider whether it ought to act with regard to the position of customers who may have suffered detriment from, or been potentially disadvantaged by, such problems but who have not complained and, if so, take appropriate and proportionate measures to ensure that those customers are given appropriate redress or a proper opportunity to obtain it. In particular, the firm should:

1. (1)

   ascertain the scope and severity of the consumer detriment that might have arisen; and

2. (2)

   consider whether it is fair and reasonable for the firm to undertake proactively a redress or remediation exercise, which may include contacting customers who have not complained.

4Firms are not required to notify the name of the individual to the FSA or the Financial Ombudsman Service but would be expected to do so promptly on request. There is no bar on a firm appointing different individuals to have the responsibility at different times where this is to accommodate part-time or flexible working.