PREPARE FOR SURGE IN COMPLAINTS

We are urging advisers to ensure their complaints procedures are up to date, following an industry-wide increase.

The latest data from the Financial Ombudsman Service (FOS) shows that in quarter three of 2023/24, 47,868 new complaints were raised, a rise of more than 6,500 on the same quarter a year earlier.

Our director, Vicky Pearce, said: “The FOS is reporting a significant increase in cases brought by claims management companies and I would not be surprised if we start to see FCA-regulated CMCs getting in on the act. Likewise, particularly astute clients may begin to question their own service delivery or fees, following the negative publicity received by St James Place.

“We know that service delivery is at the forefront of the FCA’s focus at the moment, as larger firms are being asked to evidence that they have carried out annual reviews for all their clients. This suggests the regulator expects firms to have oversight and controls in place to be able to monitor and report adequately.”

The FCA requires all firms, regardless of size, to investigate complaints, respond and where appropriate, compensate in a timely manner. Failure to do so could increase the chances of attracting an investigation and potential enforcement action, resulting in likely reputational damage.

Vicky added: “Complaints are emotive and within a small firm, it can be difficult to take a dispassionate view on the situation or complete a successful root cause analysis. Whether it is justified or not, how a compliant is handled is crucial. A firm may have policies and procedures in place, but if they lack experience in dealing with one, it can be a daunting task. Without the practical know-how, they run the risk of making a bad situation worse.

“We know that handling a complaint can be time consuming and time pressured, not only for the individual responsible, but also for the wider team providing support and evidence. However, when they are well-managed it can actually be a fantastic opportunity to turn a relationship around.”

We help clients by acting impartially to assess complaints using the evidence on file and either collating a robust and clear defence, or deciding how to rectify and compensate the client. For more information about our advice and support, contact us on (0161) 521 8641 or email: info@b-compliant.co.uk