06 November 2012

FSA: Complaints against the regulators (Bank of England, Financial Conduct Authority and Prudential Regulation Authority)

This Consultation Paper sets out the proposed scheme that the Financial Conduct Authority (FCA), the Prudential Regulation Authority (PRA) and the Bank of England (the Bank) will follow when investigating complaints made against them. Deadline for comments is 6 February, 2013.

The current version of the Financial Services Bill (Part 6) (the Bill) requires the Financial Conduct Authority (the FCA), the Prudential Regulation Authority (the PRA) and the Bank of England (the Bank) (together known as ‘the regulators’) to establish, as part of their accountability mechanisms, arrangements for the investigation of complaints against them. Part 6 of the Bill also requires the regulators to consult on these arrangements before finalising and implementing them.

This joint paper from the FCA, PRA and the Bank fulfils the requirement to consult in Part 6 of the Bill. We (the regulators) intend it to explain key aspects of the proposed Complaints Scheme (the Scheme) or to highlight changes to the existing arrangements. Full details of how the proposed Scheme will operate can be found in the appended draft Scheme. The regulators will adopt the new Scheme at the date of legal cutover to the new legislation (‘legal cutover’). This will be supplemented by material on how to complain.

The requirements for a Complaints Scheme in Part 6 of the Bill closely follow those that govern the current FSA arrangements and consist of two elements:

• investigation of a complaint by the regulators themselves; and
• investigation of the complaint by an independent person (referred to from this point as the Complaints Commissioner).

The Financial Services and Markets Act 2000 (FSMA) requires the FSA to make arrangements for the ‘investigation of complaints arising in connection with the exercise of, or failure to exercise, any of its functions (other than its legislative functions)’.

In operation for over a decade, the FSA complaints scheme has been an effective and efficient way of dealing with complaints. Recognising how closely the requirements set out in Part 6 of the Bill mirror those in FSMA, we propose adopting a very similar approach for the new Scheme.

Comments on proposed Scheme are expected by 6 February, 2013.

Full information

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