DISP 1.4 Time limits for dealing with a complaint

A firm which is able to provide a final response within five business days of receipt of a complaint may combine its acknowledgement of the complaint with the final response. (For complaints which are subject to the FSAVC review, see DISP 1.4.15 R to DISP 1.4.17 G.)

A firm should aim to resolve complaints at the earliest possible stage.

1DISP 1.4.3A R recognises that the complainant may accept the firm's response at any time during the complaint process and that this may resolve the complaint, even when the firm has not issued a final response. The firm's response need not have referred to the Financial Ombudsman Service, but should have explained how the complaint would be progressed by the firm if the complainant remained dissatisfied.

1. (1)

   DISP 1.4.9 R caters for the situation where a firm's complaints procedures provide for a complainant who is dissatisfied with the firm's response to refer the complaint back to the firm again or to the firm's head office before a final response is issued.

2. (2)

   Such firms are subject to the time limits in DISP 1.4.4 R to DISP 1.4.6 R in the same way as any other firm. However, DISP 1.4.9 R recognises that some complainants may never respond to a firm or may take a long time to do so.

3. (3)

   Provided that the firm has sent a letter which complies with the conditions in DISP 1.4.9 R within eight weeks of receiving the complaint:

   1. (a)

      if the complainant does not reply at all, the firm is not required to send a final response;

   2. (b)

      if the complainant does not reply within eight weeks of the firm's letter, DISP 1.5.7 R(3) enables the firm to treat the complaint as a closed complaint for the purposes of the reporting requirement in DISP 1.5.4 R;

   3. (c)

      if the complainant does reply (within or after eight weeks), the firm is required to continue to comply with DISP 1.4.5 G, and the time limits in DISP 1.4.5 G therefore resume. But DISP 1.4.10 R allows the firm to discount, for the purposes of the time limits in DISP 1.4.4 R to DISP 1.4.6 R, any time in excess of a week taken by the complainant to reply.

4. (4)

   The FSA expects that firms operating a two-stage complaints procedure will wish to provide complainants with easy access to the second stage of the process (for example, by referring complaints on to the next stage for them if they remain dissatisfied).

Copies of the Financial Ombudsman Service's explanatory leaflet may be reproduced under licence or can be obtained from the Financial Ombudsman Service.

Under DISP 1.4.5 G and DISP 1.4.6 R:

1. (1)

   a complainant can refer his complaint to the Financial Ombudsman Service if he receives a final response with which he is dissatisfied or the firm has had at least eight weeks to resolve the complaint and has failed to do so in that time; the complainant may decide whether to give the firm more time before exercising any right he may have to refer a complaint to the Financial Ombudsman Service;

2. (2)

   the six month time limit within which a complainant must refer a complaint to the Financial Ombudsman Service begins at the date when the final response is sent by the firm.

The effect of DISP 1.4.15 R is to relieve the firm of the obligation to comply with the requirements and time limits for replying to complainants, and the record-keeping and reporting requirements in DISP 1.5.1 R and DISP 1.5.4 R, where a complaint is subject to the FSAVC review. However, if a complainant remains dissatisfied with the outcome of the review, DISP 1.4.16 R requires the firm to treat this as a complaint and comply with these requirements just as it would in respect of any other complaint. Firms are therefore required to record and report such complaints only where they receive a complaint about the outcome of the review.