Complaint statistics of FCA regulated firms not adhering to FCA DISP 1.4 when sending Final Response letters to complainants

The Financial Conduct Authority Nid oedd gan y wybodaeth y gofynnwyd amdani.

Dear The Financial Conduct Authority,

Please can you confirm the statistics of reports made to the FCA regarding firms you regulate not adhering to FCA DISP Rules 1.4 and not providing complainants with the correct information on how to refer complaints to the Financial Ombudsman Service(FOS).

I would like you to confirm the statistics of reports made to the FCA, of FCA regulated firms incorrectly informing complainants that they are not eligible to make complaints, whilst failing to adequately inform the complainant that under FCA DISP Rules 1.4, It is not for the financial firm make a decision on whether or not the FOS will take a case and to make sure that complainants are adequately provided with the necessary information of how to complain to the FOS.

I know that you have received complaints of this nature regarding Kensington Mortgage Company and I will be grateful if you can confirm which other firms, so it can be assessed if there are other firms who routinely intentionally mislead complainants.

Please can you confirm how many times firms have received enforcement action from the FCA, for failure to adhere to FCA DISP Rules 1.4.

Yours faithfully,

J. Adeleke

The Financial Conduct Authority

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Freedom of Information, The Financial Conduct Authority

1 Atodiad

 

Our Ref: FOI6627

 

Dear Ms Adeleke,

 

Freedom of Information: Right to know request

 

We refer to your request under the Freedom of Information Act 2000 (“the
Act”), dated 12 July 2019, for the following information (please note we
have a numbered your response for ease of reference):

 1. Please can you confirm the statistics of reports made to the FCA
regarding firms you regulate not adhering to FCA DISP Rules 1.4 and
not providing complainants with the correct information on how to
refer complaints to the Financial Ombudsman Service(FOS).

 

 2. I would like you to confirm the statistics of reports made to the FCA,
of FCA regulated firms incorrectly informing complainants that they
are not eligible to make complaints, whilst failing to adequately
inform the complainant that under FCA DISP Rules 1.4 It is not for the
financial firm make a decision on whether or not the FOS will take a
case and to make sure that complainants are adequately provided with
the necessary information of how to complain to the FOS.

 

 3. I know that you have received complaints of this nature regarding
[Named firm] and I will be grateful if you can confirm which other
firms, so it can be assessed if there are other firms who routinely
intentionally mislead complainants.

 

 4. Please can you confirm how many times firms have received enforcement
action from the FCA, for failure to adhere to FCA DISP Rules 1.4.”

 

Before considering your request, we have taken reports to mean complaints
or dissatisfaction expressed. I would like to inform you that the FCA as
an organisation does not process general complaints unless they are
complaints directly against the FCA and which meet the requirements of the
FCA’s complaints scheme, “Complaints against the regulators”. Any
complainant or enquirer who expresses dissatisfaction in relation to firms
or individuals within the financial services sector generally is referred
to the Financial Ombudsman Service (“FOS”).  You may find it helpful to
visit the FOS website at [1]http://www.financial-ombudsman.org.uk for more
information.

 

Turning to your request. Whilst it may be possible that we hold
information falling within scope, to establish whether we hold the
information will exceed the cost limit. This is because for question 1,2
and 3, there are a large number of contacts received by our Consumer
Contact Centre relating to the subject of FCA DISP Rules. However, this
data is not held in a readily extractable format and, whilst we do hold a
central record of such contacts, without manually reviewing each record,
we cannot say whether any of them contain an expression of dissatisfaction
relating to the issues you have highlighted. To carry out this exercise
would exceed the cost limit provided for in the Freedom of Information and
Data Protection (Appropriate Limit and Fees) Regulations 2004, therefore
Section 12 (Cost of compliance exceeds appropriate limit) of the Act
applies. For more information, as to why this exemption applies, please
refer to Annex A below.

 

When we refuse a request because the ‘appropriate limit’ has been
exceeded, it is our general policy to provide advice and assistance to the
applicant to indicate how the request could be refined or limited to come
within the cost limit. In this instance, we can offer to consider question
4, for the last 5 year period (2015 – 2019), within the cost limit. Should
you wish for us to take this forward as a new request please let us know
in writing.

 

Please note that in reaching the conclusion that your request exceeds the
appropriate cost limit, we have not considered whether any other
exemptions under the Act apply.

 

If you are unhappy with the decision made in relation to your request, you
have the right to request an internal review.  If you wish to exercise
this right you should contact us within 40 working days of the date of
this response.

 

If you are not content with the outcome of the internal review, you also
have a right of appeal to the Information Commissioner at Information
Commissioner's Office, Wycliffe House, Water Lane, Wilmslow, Cheshire SK9
5AF.  Telephone: 01625 545 700.  Website: [2]www.ico.org.uk

 

Yours sincerely

 

Information Disclosure Team / Cyber and Information Resilience Department
/ Operations

12 Endeavour Square

E20 1JN

 

 

 

 

 

 

 

 

 

Annex A

 

·              Section 12 (Costs of compliance exceeds appropriate limit)

 

We are not required to comply with a request under the Act if it would be
too expensive to do so, as estimated in accordance with the Freedom of
Information and Data Protection (Appropriate Limit and Fees) Regulations
2004 (the “Regulations”) made by the Ministry of Justice.  The Regulations
provide that, for the FCA, the cost limit is £450, i.e. 18 hours at the
rate of £25 per person hour.  The Regulations allow us to take into
account, when estimating the cost of complying with a request, time spent
determining whether we hold the information requested, locating and
retrieving it and extracting the information from the relevant
document(s).

 

As mentioned, a large number of contacts are received by our Consumer
Contact Centre. To determine which of those records refer specifically to
the ‘DISP Rules breaches’ as you have requested, we would need to manually
check each individual record. We conservatively estimate that it would
take well in excess of 18 hours to undertake this exercise and therefore
exceed the £450 limit.

 

As our policy is not to divert our resources from our regulatory functions
in order to meet requests under the Act in excess of the cost limit, we
will not carry out an exercise to identify the information you have
requested.

 

 

 

This communication and any attachments may contain personal information.
For more information about how and why we use personal information and who
to contact with any queries about this, please see our privacy notices:
FCA Privacy Notice (https://www.fca.org.uk/data-protection) and PSR
Privacy Notice
(https://www.psr.org.uk/cookies-privacy-a...).

This communication and any attachments contain information which is
confidential and may be subject to legal privilege. It is for intended
recipients only. If you are not the intended recipient you must not copy,
distribute, publish, rely on or otherwise use it without our consent. Some
of our communications may contain confidential information which it could
be a criminal offence for you to disclose or use without authority. If you
have received this email in error please notify [email address]
immediately and delete the email from your computer. Further information
on the classification and handling of FCA information can be found on the
FCA website
(http://www.fca.org.uk/site-info/legal/fc...).

The FCA (or, if this email originates from the Payment Systems Regulator
Limited, the FCA on behalf of the Payment Systems Regulator Limited / the
Payment Systems Regulator Limited) reserves the right to monitor all email
communications for compliance with legal, regulatory and professional
standards.

This email is not intended to nor should it be taken to create any legal
relations or contractual relationships. This email has originated from the
Financial Conduct Authority (FCA), or the Payment Systems Regulator
Limited.

The Financial Conduct Authority (FCA) is registered as a limited company
in England and Wales No. 1920623. Registered office: 12 Endeavour Square,
Stratford, London, E20 1JN, United Kingdom

The Payment Systems Regulator Limited is registered as a limited company
in England and Wales No. 8970864. Registered office: 12 Endeavour Square,
Stratford, London, E20 1JN, United Kingdom

Switchboard 020 7066 1000

Web Site http://www.fca.org.uk (FCA); http://www.psr.org.uk (the Payment
Systems Regulator Limited)

References

Visible links
1. http://www.financial-ombudsman.org.uk/
2. http://www.ico.org.uk/