1. CP12/30 FSA Consultation PaperSummary: Complaints against
the regulators A CEI Compliance FSA Consultation Papers
Summary
2. What Is It All About?This will be of interest to all firms
and individuals that will come underthe new UK regulators as
regulated, registered or authorised.BackgroundThe FSA are currently
required to make arrangements for theinvestigation of complaints
arising in connection with theexercise of, or failure to exercise,
any of its functions (otherthan its legislative functions) under
the Financial Services andMarkets Act 2000 (FSMA).Identified as an
effective and efficient way of dealing withcomplaints the current
FSA complaints scheme has been inoperation for over a decade. The
requirements set out in Part6 of the Financial Services Bill
closely mirror those in FSMA,which shows that the proposal to adopt
a very similarapproach for the new scheme has been
recommended.
3. What Is It All About?The latest version of the Financial
Services Bill requires theFinancial Conduct Authority (FCA), the
Prudential RegulationAuthority (PRA), and the Bank of England to
establish howthey will investigate complaints against
themselves.The Bank of England and the Financial Services Authority
(FSA)jointly published a 34-page Consultation Paper (CP)
12/30entitled Complaints against the regulators (The Bank
ofEngland, Financial Conduct Authority and PrudentialRegulation
Authority), on 6 November 2012.It is proposed to delete the
existing section, COAF, in the FSAhandbook, and the new regulators
will instead simply publishthe relevant material concerning the new
Scheme on theirrespective websites.
4. So What Does It Say?The requirements for a Complaints
Scheme, in Part 6 of theFinancial Services Bill, closely follow the
contemporary FSAarrangements, and consist of two primary elements:-
investigation of a complaint by the regulators themselves;and
investigation of the complaint by an independent person(referred to
as the Complaints Commissioner).The relevant functions of the FCA
and the PRA that are to beinvestigated are their functions with the
exception of theirlegislative functions. The relevant functions of
the Bank ofEngland are its functions under Part 18 of FSMA
(recognisedclearing houses) or under Part 5 of the Banking Act
2009(inter-bank payment systems), also with the exception of
itslegislative functions.
5. So What Does It Say?Processes in addition to the basic
scheme will enable theregulators to investigate complaints where
allegations havebeen made against any multiple of
them.Understandably t the regulators are committed to dealing
withall complainants fairly and equally. Typically there will be
nocharge made by the regulators, or by the ComplaintsCommissioner,
to those who use the new scheme.Complaints against the regulators
will be dealt with within fourweeks or, if and where this is not
possible, they will write tothe complainant within this time,
setting out a timetable fordealing with the complaint.The
regulators are apparently totally committed totransparency in the
arrangements of the proposed Schemeand will publish data on levels
of compliance with their servicestandards and other information
annually.
6. So What Does It Say?Any complainant who is dissatisfied with
the outcome of theregulators investigation, or who considers that
the regulatorsare taking too long without explanation, will be
entitled torefer the complaint to the Complaints Commissioner.The
regulators will cooperate with each other to ensure thatthe
proposed scheme operates as one. This will be particularlyrelevant
when they are required to investigate complaintsincorporating
allegations against more than one of the them.The FCA will process
complaints submitted centrally throughthe published complaints
helpline number or email address.Even if the complaint is about one
of the other regulators, theywill be responsible for recording
details of the complaint andassigning it to the relevant
regulator(s) for action.
7. What Next?There are a number of areas also discussed,
mainlyconcerning legal cutover limits and transitionalprocedures,
as well as the nomination of a ComplaintCommissioner.For full
details read the document on the FSS website
atwww.fsa.gov.ukComments are requested by 6/2/2013.The FSA will
then consider the responses and publish aPolicy Statement,
summarising that feedback and settingout the new scheme in its
entirety.
8. What Is This Presentation This is a regulatory summary
service provided by CEI Compliance Limited, The UKs Fastest Growing
Regulatory Consultancy We can only advise on the salient points in
this summary and if you want further details then we would suggest
you access the full document from the FSA Website at
www.fsa.govuk
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