Complaints to a Regulated Firm

If you have lost money as a result of negligent advice you must first make your complaint to the regulated firm who gave you that advice. All regulated firms must follow the same complaints procedure laid down by the Financial Services Authority.

• Any complaint whether verbal or in writing must be responded to in writing within 5 business days.
  
  
• If four weeks have elapsed since the firm received the complaint and has not already sent a final response, the firm must send a 'holding response', which explains why the firm is not yet in a position to resolve the complaint and indicates when the firm will make further contact. This contact must be within eight weeks of receipt of the complaint.
  
  
• Further contact within eight weeks will either be the final response of the firm or it will be a second holding response explaining reasons for the delay and when the final response can be expected. The holding response must enclose a copy of the explanatory leaflet about the Financial Ombudsman Service.
  
  
• If you are not satisfied with the firm’s final decision you can then refer your complaint to the Financial Ombudsman Service.
  
  

Financial Ombudsman Service (FOS)

The FOS is an independent organisation established under the Financial Services and Markets Act 2000 (FSMA) to settle individual complaints between consumers and businesses providing financial services.

The FOS is designed to resolve complaints about financial services firms quickly and with minimum formality.

It is a completely independent organisation which looks at both sides of a complaint in order to evaluate the facts and suggest an outcome which is fair.

It is very rare for a regulated financial services firm to ignore a decision made by the FOS and in almost all cases the firm will comply with the final decision.

The FOS can recommend, in most cases, firms compensate up to a maximum of £150,000.

The FOS is a free service consumers can make complaints on their own behalf.

Financial Services Compensation Scheme (FSCS)

The FSCS has been established to pay compensation to eligible claimants in the event of a default by an authorised person.

If an authorised firm is unable to pay claims made against it, the FSCS will declare the firm in ‘default’ and step into the shoes of the firm and pay compensation to eligible complainants.

Eligible claimants are broadly the less knowledgeable clients of the firms and the default is typically the firm suffering insolvency.

The FSCS will pay compensation up to a maximum of £50,000 for firms declared in default from the 01/01/2010 (Maximum of £48,000 before this)

The FSCS is a free service consumers can submit a claim on their own behalf.