This emphasises the importance of internal resolution mechanisms and sets the stage for external intervention if needed.
Learning and improvement
Each complaint received by the firm presents an opportunity for learning and process enhancement. It is crucial to conduct a post-resolution analysis, identifying root causes and areas for improvement.
This analysis contributes to the firm's commitment to continuous improvement and helps prevent similar issues from recurring.
Firms are encouraged to review trends in complaints, looking for patterns that may indicate systemic issues that may also require addressing.
This proactive approach to learning not only aligns with regulatory expectations but also strengthens the firm's risk management and compliance frameworks.
Reporting to the FCA
As part of regulatory compliance, firms are required to report complaints to the FCA, typically via their RegData return. This includes complaints that are not resolved within the stipulated eight-week timeframe.
Timely and accurate reporting to the FCA is essential for transparency and regulatory oversight.
Management information and consumer duty
Complaint MI plays a crucial role in fulfilling the principles of consumer duty by providing accurate and comprehensive data for monitoring and ensuring that the firm's practices align with regulatory requirements.
The MI generated serves as a tool to demonstrate the fair treatment of consumers, promoting transparency, ethical conduct, and a customer-centric approach.
Handling customer complaints is an integral aspect of maintaining a robust and customer-centric business. Firms must approach complaints with a commitment to fairness, transparency, and continuous improvement.
Following the implementation of consumer duty, all firms are required to deliver good customer outcomes with no unreasonable barriers.
Those firms that acknowledge complaints promptly, conduct thorough investigations, and learning from each case not only fulfil regulatory obligations but also foster trust and confidence among their clients.
Rob Fardey is director of compliance services at SimplyBiz
