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U.K. regulators The Financial Conduct Authority, the Prudential Regulation Authority and the Bank of England have proposed a new draft of their complaints scheme.
The new complaints scheme is promised to be more user-friendly, easier to read and overall more accessible to the public and firms, the FCA announced.
The regulators have put forth a consultation for consumers to provide input on how to make the complaints scheme better. The consultation includes all three U.K. regulators.
The consultation to improve the complaints scheme will inquire about how the language of the document can be revised to make it more approachable to the public.
The regulators also propose the complaints scheme policy on goodwill payments be amended to be clearer, and they are looking for feedback.
The consultation is open for consumers and businesses and will remain available for eight weeks. The consultation will end on 14 September 2020.
The regulators state they want to simplify the complaints scheme to make it more operative and practical for small businesses and consumers.
The complaints scheme includes the regulators’ description for the ex-gratia payments procedure, and they aim to make this policy more apparent for users. If users have a better understanding of the policy, the regulators say, they will have clarification on what they can or cannot anticipate from the complaints scheme.
The consultation applies to any consumer or small business that may be a complainant in the future and a user of the scheme. Consumers of the financial services industry, action groups, politicians, trade associations, consumer advocates and others may be interested.
The updated complaints scheme and consultation come at a time when the regulators have faced some criticism about the handling of certain cases.
Some of the regulators’ management of complaints have been scruntised by lawmakers in the U.K.
A report about the criticisms was created earlier this year by the complaints commissioner. The FCA has issued a response to the complaints against them and how it plans to fix the issues going forward.
The Treasury Committee also has criticised the FCA, Bloomberg reports.
U.K. lawmakers have investigated whether Andrew Bailey, the Bank of England governor, had done enough during the debacle that found three firms selling precarious mini-bonds that eradicated approximately £300 million of consumers’ funds. The FCA was chastised for not guarding whistleblowers and investors against harm.
Rt Hon. Mel Stride MP of the Treasury Committee has written to the FCA, urging the regulator to make progress regarding the handling of some complaints.
The letter sought clarification on how the FCA “addressed those complaint handling delays, and commentary on how this situation arose, and how it will be prevented in the future.”
The Treasury Committee is expecting some evidence that the FCA will be making progress toward handling complaints better in the future.
The FCA has acted swiftly regarding the complaints against it. Its chairman, Charles Randall, has addressed the situation, noting the FCA is taking the claims seriously and working toward improving.
Mr. Randall reportedly has acknowledged the matter and the FCA is taking the improvements seriously.
In an effort to accept the criticisms, the consultation from the regulators is welcoming comments on how they can improve handling complaints in order to create a new complaints scheme that will be of service to everyone who needs it.
If you would like to make a comment on how to improve the complaints scheme, use the regulators’ online response form.
Do you plan on sending your comments to the regulators to improve the complaint scheme? Let us know in the comments.
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