RECEIVED A COMPLAINT? DON’T TAKE IT PERSONALLY

Complaints are never fun (unless you’re a bit of a Karen). Especially when you’re on the receiving end.

When you work hard for clients, it can be a blow to discover someone’s not happy with you, your service or your advice. For smaller firms, where the adviser, director and complaints handler is often the same person, it can feel very personal.

But here’s the thing, a complaint isn’t a slur on your character or professionalism. It’s simply a signal that something hasn’t gone the way the client expected. How you handle it matters far more than the complaint itself. Get this bit right and you can repair the relationship. If you jump in and act defensively, you risk escalating the issue.

We don’t get complaints…

Firms often tell us they don’t receive complaints, as if this proves everything is working perfectly. We understand you’re proud of your record, but it doesn’t tell the full story.

The FCA makes it clear – low complaint numbers don’t necessarily equal good customer outcomes. This is something you are expected to understand and monitor, so don’t assume everything is fine because no one has grumbled.

Sometimes clients don’t raise an issue because they don’t feel confident to do so. They might simply not want the hassle or they don’t realise something hasn’t worked the way it should. No complaints don’t always mean no problems.

Small firms feel it the most

Small, and even some medium-sized firms, don’t usually have a complaints department. You probably don’t have a dedicated compliance team, just a compliance manager that wears many hats.

So, when we combine a lack of complaints handling experience with a person who is close to the original case, things can get tricky. It’s easy to become defensive, especially when you’ve spent years building strong client relationships. As a result, we see lots of instances where investigations lean heavily towards justification, rather than objectivity.

Consumer Duty requires firms to focus on outcomes and fairness. That means putting a bit of distance between the complaint and the initial advice. If an issue is raised, stop, take a moment and think:

• What is the client actually telling us?
• Did their expectations align with what was delivered?
• Could we have approached things differently?

 Untested complaints processes

Most firms have a complaints process in place. This is a regulatory requirement, but it can often become a tick-box exercise. If you only ever receive the occasional objection, it might not have been tested in reality.

When an issue actually arises, gaps in the process suddenly appear – unclear roles, missing steps, inconsistent investigations or timing problems. All of this adds stress and increases the risk of unnecessary escalation.

Clear, practical and tested procedures make a huge difference when emotions are running high, for both the client and the person dealing with the complaint.

A third-party view can help

Because complaints can feel personal, it is often beneficial to enlist the help of an individual who isn’t attached to the original advice or relationship. This could be someone internally, or an external consultant.

Having an independent third party to properly weigh up the facts and consider things from the client’s perspective helps you:

• Remove bias from the investigation
• Focus on evidence rather than emotion
• Respond fairly and consistently
• Demonstrate to the FCA and FOS that you’ve approached things objectively.

Even a quick sense check from someone outside your firm can build confidence that your response is both fair and fully aligned with DISP and Consumer Duty expectations.

Don’t go it alone

Complaints are never enjoyable, but they don’t have to be stressful, or personal.

With the right process in place, the right mindset and a bit of distance, you can actually strengthen your client relationship and improve outcomes.

We have supported many firms through complaints and have seen the good, the bad and the ugly! If you’d like help handling an issue, or you’d like to review the process you have in place, we’re here to support you. Don’t hesitate to contact us on (0161) 521 8641 or email: info@b-compliant.co.uk