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U.K. Lawmakers Scrutinize FCA’s Handling of Complaints

U.K. Lawmakers Scrutinize FCA’s Handling of Complaints

The Financial Conduct Authority’s handling of complaints faces another round of scrutiny from U.K. lawmakers, after a report earlier this year criticized how the regulator dealt with some cases.

In April, the Complaints Commissioner published a report that contained numerous findings about an individual case, and wider observations about how the FCA interacts with people raising grievances.

On Friday, Mel Stride, chairman of Parliament’s Treasury Committee, wrote to the Complaints Commissioner for feedback on how the FCA has dealt with the issues raised in its report. He also asked the authority about changes it was making to its complaints process.

The Treasury Committee has been critical of the FCA, which oversees the conduct of 59,000 financial services firms and the country’s financial markets. The lawmakers questioned if Bank of England Governor Andrew Bailey, who previously led the watchdog, did enough in the collapse of three companies selling risky mini-bonds that lost about 300 million pounds ($372 million) of consumers’ money. The panel criticized the regulator for not protecting whistle-blowers and retail investors.

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“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,” Stride said in his letter.

The FCA’s Complaints Scheme requires the agency to give timelines for those who complain, and ensure that their concerns are dealt people with sufficient seniority, Stride said. The agency should resolve their complaint as swiftly as possible with the aim of satisfying the complainant.

Charles Randell, the chairman of the FCA, said in a letter to Stride earlier this month that the agency was working to improve its systems.

Whilst the majority of complainants do receive timely and adequate responses to their complaints, it is unacceptable that some complainants have experienced significant delays in the handling of their complaints or received inadequate responses,” Randell wrote in the letter released by Stride. “We have acknowledged that significant and prompt improvement is necessary to address this, and ensure this situation does not recur.”

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