FCA GUIDANCE – COMPLAINTS HANDLING DURING CORONAVIRUS

Relevance: All firms.

Action Required: Review FCA Guidance; ensure that you can fulfil the Regulator’s expectations and communicate with them if you cannot.

On 1 May 2020, the FCA published its expectations of firms, during the coronavirus lockdown.

In particular, the Regulator is keen to ensure that all firms have complaints processes that still operate effectively, given the changed working practices for some businesses.

The Regulator’s priority is to ensure that consumers (especially those considered to be vulnerable) and small businesses (which may be under increased financial pressure) are prioritised.  Particular attention should be paid to: -
i)    Promptly paying redress on complaints where this has already been agreed.
ii)    Promptly and fairly resolving complaints from:
•    Consumers likely to be vulnerable to harm if the complaint is not properly resolved quickly.
•    Small businesses likely to face financial difficulties if their complaint is not resolved quickly and fairly.
iii)    Firms need to promptly send holding responses to complainants in (ii), where the firm cannot resolve their complaint promptly.

The Regulator has made it clear that, where the firm cannot deliver these three outcomes, through homeworking, the firm will need to consider allowing staff to return to the normal business location (subject to social distancing).

Vulnerable Consumers

Full guidance, from the FCA, can be found at https://www.fca.org.uk/firms/firm-handling-complaints-during-coronavirus

The belief is that many more consumers will be considered to be vulnerable, in the current circumstances, than would normally be the case.

Maintaining the Quality of Complaint Handling

The Regulator accepts that it may take slightly longer than normal to respond to some complaints.  The expectation is that the quality of response should not diminish.  Specifically, the Regulator does not expect the current circumstances to impact upon firms’ ability to: -
•    Tell consumers about complaints procedures and the FOS service.
•    Enable customers to submit complaints (although it accepts that more of these may be channelled via the firm’s website, freeing up telephone capacity to consumers who cannot use online communication).
•    Acknowledge receipt of complaints promptly.

Firms Experiencing Difficulties

If any firm is having significant difficulties complying with complaint-handling rules, the expectation is that the firm will contact the FCA and tell them what the firm is doing to manage and address non-compliance.