5Where a firm has outsourced activities to a third party processor, DISP 1.1.1 G 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.

38The following rules and guidance in this chapter also apply to every licensee for the purposes of the Consumer Credit Jurisdiction as if it were a firm:

1. (1)

   DISP 1.1.1B R - DISP 1.1.1E G and DISP 1.1.2 G (Application);

2. (2)

   DISP 1.2 (Internal complaint handling procedures: general requirements) in relation to complaints about activities of the licensee specified in DISP 2.6.8A R;

3. (3)

   DISP 1.3 (Internal complaint handling procedures: additional requirements);

4. (4)

   DISP 1.4 (Time limits for dealing with a complaint); and

5. (5)

   DISP 1.6 (Cooperation by firms with the ombudsman).

38In relation to the Consumer Credit Jurisdiction only, FOS Ltd may dispense with or modify the application of the rules in this chapter in particular cases where it considers it appropriate to do so and is satisfied that:

1. (1)

   compliance by the licensee with the rules, or with the rules as unmodified, would be unduly burdensome or would not achieve the purpose for which the rules were made; and

2. (2)

   it would not result in undue risk to the persons whose interests the rules are intended to protect.

Except as otherwise specified, references to a "complaint" in this chapter include a complaint which is capable of becoming a relevant new complaint or a relevant transitional complaint.3

1. (1)

   A firm which does not conduct business with eligible complainants and has no reasonable likelihood of doing so is exempt from DISP 1.2 - DISP 1.7, if:

   1. (a)

      it has notified the FSA in writing that those conditions apply ; and

   2. (b)

      the conditions in fact continue to apply.

2. (2)

   The exemption takes effect from the date on which the notice was received by the FSA.

3. (3)

   In (1), conducting business means carrying on any of the activities to which the rules in DISP 2.6 apply with or for persons who are eligible complainants under DISP 2.4.2

A firm which is exempt under DISP 1.1.7 R must notify the FSA in writing2 as soon as reasonably practicable if the conditions in DISP 1.1.7 R no longer apply.

A firm, A,4 must have in place and operate appropriate and effective internal complaint handling procedures (which must be written down) for:

1. (1)

   handling any expression of dissatisfaction, whether oral or written, and whether justified or not, from or on behalf of an eligible complainant about A's4 provision of, or failure to provide, a financial service; and4

   4
2. (2)

   referring to another firm, B, expressions of dissatisfaction about B's services, if A markets (or has marketed) B's financial services or if A's financial services are marketed by B.4

3If the expression of dissatisfaction is from, or on behalf of, a person who is not an eligible complainant, and relates to insurance mediation activity carried on by an insurance intermediary, then unless the insurance intermediary is an insurer, the insurance intermediary must have in place and operate appropriate and effective procedures for registering, and responding to, the expression of dissatisfaction.

A firm must:

1. (1)

   Refer eligible complainants1 in writing to the availability of its internal complaint handling procedures at, or immediately after, the point of sale;

2. (2)

   publish details of its internal complaint handling procedures, supply a copy on request to an eligible complainant1, and supply a copy automatically to the complainant when it receives a complaint from an eligible complainant1 (unless the complaint is resolved by close of business on the next business day); and

3. (3)

   display in each of its branches or sales offices to which eligible complainants have access a notice indicating that it is covered by the Financial Ombudsman Service.

A firm's internal complaint handling procedures under DISP 1.2.1 R must make provision for:

1. (1)

   complaints to be investigated by an employee of sufficient competence who, where appropriate, was not directly involved in the matter which is the subject of the complaint;

2. (2)

   the person charged with responding to complaints to have the authority to settle complaints (including the offering of redress where appropriate) or to have ready access to someone who has the necessary authority; and

3. (3)

   responses to complaints to address adequately the subject matter of the complaint and, where a complaint is upheld, to offer appropriate redress.

Where a firm decides that redress is appropriate, a firm must provide a complainant with fair compensation for any acts or omissions for which it was responsible and comply with any offer of redress which the complainant accepts.

A firm must take reasonable steps to ensure that all relevant employees (including employees of appointed representatives) are aware of the firm's internal complaint handling procedures and must endeavour to ensure that they act in accordance with them.

A firm must put in place appropriate management controls and take reasonable steps to ensure that in complying with DISP 1.2.1 R it handles complaints fairly, consistently and promptly and that it identifies and remedies any recurring or systemic problems, as well as any specific problem identified by a complaint.

DISP 1.4 - DISP 1.51 do not apply:

1. (1)

   where the firm has taken reasonable steps to determine, and has determined, that the complaint:

   1. (a)

      is not made by, or on behalf of, an eligible complainant; or

   2. (b)

      does not relate to an activity of that firm (or of any other firm with whom that firm has some connection in marketing financial services)3 which comes under the jurisdiction of the Financial Ombudsman Service; or

   3. (c)

      does not involve an allegation that the complainant has suffered, or may suffer, financial loss, material distress or material inconvenience; or

2. (2)

   where the complaint has been resolved by close of business on the business day following its receipt.

1In order to comply with DISP 1.3.3 R(2), when a complaint is received on any day other than a business day, or after close of business on a business day, a firm can treat the complaint as received on the next business day.

A firm must send a written acknowledgement of a complaint to the complainant3 within five business days of its receipt, giving the name or job title of the individual handling the complaint for the firm (together with details of the firm's internal complaint handling procedures).

1 DISP 1.4.4 R to DISP 1.4.6 R do not apply if the complainant has already indicated in writing acceptance of a response by the firm, provided that the response informed the complainant how to pursue his complaint if he remained dissatisfied.

A firm must, within four weeks of receiving a complaint, (unless DISP 1.4.3A R1 or DISP 1.4.9 R applies) send the complainant either:

1. (1)

   a final response; or

2. (2)

   a holding response, which explains why it is not yet in a position to resolve the complaint and indicates when the firm will make further contact (which must be within eight weeks of receipt of the complaint).

Where, within eight weeks of receiving a complaint, the firm sends the complainant a written response which:

1. (1)

   offers redress (whether or not it accepts the complaint) or rejects the complaint and gives reasons for doing so;

2. (2)

   informs the complainant how to pursue his complaint with the firm if he remains dissatisfied;

3. (3)

   refers to the ultimate availability of the Financial Ombudsman Service if he remains dissatisfied with the firm's response; and

4. (4)

   indicates that it will regard the complaint as closed if it does not receive a reply within eight weeks;

the firm is not obliged to continue to comply with DISP 1.4.4 R or DISP 1.4.5 G unless the complainant indicates that he remains dissatisfied, in which case, the obligation to comply with DISP 1.4.5 G resumes.

If the complainant takes more than a week to reply to a written response of the kind described in DISP 1.4.9 R, the additional time in excess of a week will not count for the purposes of the time limits in DISP 1.4.4 R - DISP 1.4.6 R.

When a firm sends a complainant its final response, the final response must:

1. (1)

   inform the complainant that he may refer the complaint to the Financial Ombudsman Service if he is dissatisfied with the final response and that he must do so within six months; and

2. (2)

   enclose a copy of the Financial Ombudsman Service's explanatory leaflet (unless it has already done so under DISP 1.4.5 G(2)(b)).

DISP 1.4.1 R to DISP 1.4.14 G and DISP 1.5.1 R and DISP 1.5.4 R do not apply where the 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.

Where DISP 1.4.15 R applies, the firm must, if the complainant remains dissatisfied on completion of that review, treat that expression of dissatisfaction as a complaint and comply with DISP 1.4.1 R, DISP 1.4.14 G, DISP 1.5.1 R and DISP 1.5.4 R.

1. (1)

   3A firm which has reasonable grounds to be satisfied that another firm may be solely responsible for the fault alleged in a complaint may refer the complaint to that other firm, but if it does so it must:

   1. (a)

      refer the complaint promptly and in any event within five business days of the date on which it became satisfied that such other firm may be responsible for the subject matter of the complaint;

   2. (b)

      make the referral using a durable medium; and

   3. (c)

      inform the complainant of the referral by way of a final response and include the other firm's contact details.

2. (2)

   3A firm which has reasonable grounds to be satisfied that another firm may be jointly responsible for the fault alleged in a complaint, may refer the complaint to that other firm but if it does so it must:

   1. (a)

      refer the complaint promptly and in any event with five business days of the date on which it became satisfied that such other firm may be jointly responsible for the subject matter of the complaint;

   2. (b)

      make the referral on a durable medium;

   3. (c)

      at the same time inform the complainant of the referral and include the other firm's contact details; and

   4. (d)

      comply with the obligations in DISP as to the investigation of that part of the complaint that is the firm's responsibility and, as soon as possible, inform the complainant of the outcome by a final response.

3When a firm receives a complaint referred to it under DISP 1.4.18 R, the complaint is treated for the purposes of DISP as if made directly to that firm, and as if received by it when the referral was received.

A firm must make and retain records of complaints subject to DISP 1.4-DISP 1.6 for a minimum period of three years from the date of its receipt of the complaint.

A firm must provide the FSA, twice a year, with a report in the format set out in DISP 1 Annex 1R which contains (for the relevant reporting period) information about:2

1. (1)

   the total number of complaints subject to DISP 1.4 to DISP 1.6 received by the firm, broken down according to the categories and in respect of each of the generic product types described in DISP 1 Annex 1R which are relevant to the firm;2

2. (2)

   the total number of complaints subject to DISP 1.4 - DISP 1.6 closed by the firm:

   1. (a)

      within four weeks or less of receipt;

   2. (b)

      within four to eight weeks of receipt; and

   3. (c)

      more than eight weeks after receipt;

      3
3. (3)

   the total number of complaints subject to DISP 1.4 - DISP 1.6:3

   1. (a)

      upheld by the firm in the reporting period;3

   2. (b)

      that the firm knows have been referred to, and accepted by, the FOS in the reporting period; 35

   3. (c)

      outstanding at the beginning of the reporting period; and35

   4. (d)

      outstanding at the end of the reporting period; and5

4. (4)

   the total amount of redress paid in respect of complaints subject to DISP 1.4 to DISP 1.6 during the reported period.3

For the purposes of DISP 1.5.4 R:

1. (1)

   The relevant reporting periods are:3

   3
   1. (a)

      the six months immediately following a firm's accounting reference date; and3

   2. (b)

      the six months immediately preceding a firm's accounting reference date.3

2. (2)

   Reports are to be submitted to the FSA within 30 business days of the end of the relevant reporting period.3

   3

For the purpose of DISP 1.5.4 R (2), a closed complaint is a complaint:

1. (1)

   where the firm has sent a final response; or

2. (2)

   where the complainant has indicated in writing acceptance of the firm's earlier response; or

3. (3)

   where DISP 1.4.9 R applies, provided that the complainant has not responded to the firm within eight weeks of the written response referred to in that rule.

A report under this section must be submitted through, and in the electronic format specified in, the FSA Complaints Reporting System or the appropriate section of the FSA website.3

1If a firm is unable to submit a report in electronic format because of a systems failure of any kind, the firm must notify the FSA, in writing and without delay, of that systems failure.3

For the purpose of inclusion in the public record maintained by the FSA, a firm must:1

1. (1)

   provide the FSA, at the time of its authorisation, with details of a single contact point within the firm for complainants; and1

2. (2)

   notify the FSA of any subsequent change in those details when convenient and, at the latest, in the firm's next report under DISP 1.5.4 R.1

A firm must submit reports required under this chapter to the FSA containing all the information required. 5

A firm must cooperate fully with the Ombudsman in the handling of complaints against it.

The Society of Lloyd's must establish and maintain appropriate and effective procedures for handling complaints by policyholders against members of the Society, which comply with DISP 1.

Members of the Society of Lloyd's must, in complying with DISP 1, ensure that the arrangements which the member maintains are compatible with the procedures maintained by the Society in accordance with DISP 1.7.1 R, so that, taken as a whole, the requirements of DISP are met.

A complaint by a policyholder against a member of the Society of Lloyd's may not be referred to the Financial Ombudsman Service until after the internal procedures in DISP 1.7.1 R have been completed or until after the end of eight weeks from receipt of the complaint, whichever is the earlier.

Notices under DISP 1.1.7 R must be given to the FSA by the Society of Lloyd's on behalf of any member eligible for an exemption under that rule.

The Society of Lloyd's must notify the FSA if the conditions in DISP 1.1.7 R no longer apply to a member who is exempt.

The report in DISP 1.5.4 R must be provided by the Society of Lloyd's and must cover all complaints by policyholders against members falling with the scope of DISP 1.5.4 R.

A members' adviser must establish and maintain effective arrangements for handling any complaint from a member of the Society of Lloyd's regarding advice given to the member in connection with the acquiring or disposing of syndicate participation.

2The Society must establish and maintain appropriate and effective arrangements for handling any complaint from a member or a former member about:

1. (1)

   regulated activities carried on by the Society;

2. (2)

   the Society'sregulatory functions carried on by the Society, the Council or those to whom the Council delegates authority to carry out such functions;

3. (3)

   advice given by an underwriting agent to a person to become, continue or cease to be, a member of a particular syndicate; and

4. (4)

   the management by a managing agent of the underwriting capacity of a syndicate on which the complainant participates or has participated.

2The Society must maintain by byelaw one or more appropriate effective schemes for the resolution of disputes between an individual member or a former member who was an individual member and:

1. (1)

   his underwriting agent; or

2. (2)

   the Society.

2For the purposes of DISP 1.7.14 R "individual member" includes a member which is a limited liability partnership or a body corporate whose members consist only of, or of the nominees for, a single natural person or a group of connected persons.

2A contravention of DISP 1.7.14 R or DISP 1.7.15 R does not give rise to a right of action by a private person under section 150 of the Act (Actions for damages) and each of those rules is specified under section 150(2) of the Act as a provision giving rise to no such right of action.

Complaints return form

This annex consists only of one or more forms. Forms are to be found through the following address:

Complaints return form - DISP 1 Annex 1 R321