Should Finance firms need to report on all complaints?
What a difference a day (or two) makes to FCA complaints data reporting.
Finance and Insurance sector readers will be aware of the next business day rule. Clear up a complaint within one business day and it does not need to be reported to the FCA (Financial Conduct Authority). The current FCA consultation on improving complaints handling proposes that the “window” on less formal front line resolution should be widened to 3 days. This would keep up reasonable pressure to respond but the extra time would allow more complaints to be resolved without needing to be escalated to a formal (more time-consuming) process.
This comes with the suggestion that all complaints should be reported to the FCA in future (not just those that have been escalated to the firm’s formal complaints process).
Many believe that minor issues that are “just calls for help” should not be put forward as shortcomings, and that leads to another interesting topic – one that is covered in previous blogs – that the best organisations see complaints as invitations to improve. So we would say ‘yes’, firms should report on all complaints.
But is it really necessary to log and report every complaint?
With the existence of smart, and now low-cost, complaint management systems which help firms easily and effectively log and categorise complaints, as well as channel them for effective action, we think there is no excuse not to harness the power of good complaints handling. Not to mention the root cause and trend analysis features of such systems that provide invaluable opportunities for companies to improve.
The management information you can get from a good complaints management system pays its own way via avoidance of repetition of complaints on a given topic, improved service/customer retention and reduced handling costs. And a system that has regulatory compliance built in – both in terms of complaint handling best practice and reporting needs – will help keep you right with all stakeholders.
Insurers for example, who must also adhere to Lloyd’s timescales, will want a system that allows them to choose varying timelines depending on who is next in line to receive the complaint – Lloyd’s or FCA. If there is a change in regulatory timescales, a variation in Lloyd’s timescales, or a promise made to a broker or a customer to respond within a given timescale, a dedicated FCA compliant complaints management system will keep finance firms right.
Workpro is a FCA compliant complaints management system. Comprehensive complaints handling and reporting out of the box. For more information visit: www.workpro.com