The Treasury Select Committee has deemed the Financial Conduct Authority’s (FCA) handling of complaints “troubling”.
This follows a Complaints Commissioner report which discovered that the FCA is not following requirements around time needed and people involved in the process.
The regulator is trying to address the complaints issue, the commissioner added, but it has not been fixed yet.
Mel Stride MP, chair of the Treasury committee, said: “The complaints scheme requires that those who complain to the FCA should be provided with timescales; their complaint should be dealt with by people with sufficient seniority; and their complaint should be resolved as swiftly as possible with the aim of satisfying the complainant.
“Whilst it is troubling that the commissioner has stated that these requirements are not currently being met in some of the cases that reach him, he has also noted that the FCA is making genuine attempts to address these complaints-handling problems.
“The commissioner, though, has stated that the FCA has not yet solved these problems. It is welcome, therefore, that the FCA has committed to addressing these issues.
“The Treasury Committee will expect to see real progress from the FCA in this area and will be seeking regular updates including in our evidence sessions with the FCA.”
Set a ‘good example’
Eugen Neagu, director at N2 Asset Management, told International Adviser that the regulator should follow the principles rules and behaviour it expects from the firms it controls.
“As IFAs, we have clear rules on how to deal with client complaints, and the FCA is reminding us all the time about our responsibilities, including treating customers fairly.
“It is very important that the FCA gives a good example, responds faster and deal with its complaints from financial services users and regulated firms in a similar manner, as they expect regulated firms to do it.”