Financial Conduct Authority
COVID-19 - FCA updates statement on firms’ handling of complaints - 31 July 2020
The FCA has updated its statement, originally published in May 2020, on how firms should handle complaints received during COVID-19. The regulator reviewed the statement at the end of July 2020 and has republished it with some minor revisions and alterations.
The FCA makes a number of clarifications in the updated statement, including that:
- firms have now had enough time to embed new ways of working and, as such, a failure to comply with requirements in chapter 1.6 of the Dispute Resolution: Complaints sourcebook (DISP), or other complaint handling requirements, should only arise in exceptional COVID-19-related circumstances;
- senior managers continue to be accountable for overseeing complaints-handling; where firms are experiencing reduced complaints handling capacity, they are expected to prioritise the prompt payment of complainants;
- the FCA expects firms to co-operate with the Financial Ombudsman Service (FOS) and respond to requests for information in a timely fashion, as required by DISP; and
- claims management companies (CMCs) are expected to allow firms the time requested in their holding responses to give their final response, if the CMC considers the amount of time requested to be reasonable.
The FCA intends to review and update the statement by the end of October 2020.
Updated FCA statement on firms’ handling of complaints in light of COVID-19
COVID-19 - FCA consults on guidance on cancellations and refunds - July 2020
The FCA has published for consultation guidance for consumers on cancellations and refunds in light of COVID-19. The proposed guidance aims to help consumers identify their options to claim for any cancelled travel or events as quickly and easily as possible, from the provider that is likely to produce the best possible outcome for them. The guidance also sets out what is expected from insurance providers and card providers in respect of their helping consumers when they make a claim concerning a cancelled trip or event. The proposed guidance follows FCA statements published on 29 June 2020 to help consumers understand their rights in this context.
Among other things, the proposed guidance states that firms should:
- take reasonable steps to minimise the referral of customers to card providers where this would not be in consumers’ interests (that is, when they are unlikely to have a valid claim with their card provider). This may include explaining what section 75 of the Consumer Credit Act 1974 (CCA) covers;
- explain to customers why they are asking them to go to their card provider first (if relevant); and
- explain to customers the benefits of claiming with their card provider, and why this might lead to a better outcome for them.
FCA Guidance Consultation for consumers on cancellations and refunds in light of COVID-19
Webpage
Webpage on COVID-19 cancellations and refunds
FCA Consultation Paper CP20/16 - Debt Advice Levy Rates for 2020/21: Additional funding - August 2020
The FCA has published a Consultation Paper (CP20/16) on the rates that it proposes to charge in respect of its debt advice levy for 2020/21, which is used to fund the Money and Pensions Service (MaPS) and debt advice delivered by the devolved authorities. The FCA consulted on its regulated fees and levies proposals for 2020/21 in CP20/6 in April 2020 and published its final rates and levies in PS20/7 in July 2020.
The FCA is consulting on revised rates for its debt advice levy. This follows MaPS and the devolved authorities notifying them that they require an additional £14.2 million and £2.1 million in funding respectively to maintain their provision of debt advice services in light of the impact of COVID-19.
The FCA will consider comments on its proposals and, subject to Board approval in November 2020, plans to publish feedback in November or December 2020. Firms will be invoiced from December 2020, on the basis of the additional fees and levies.
FCA Consultation Paper CP20/16 – Debt Advice Levy Rates for 2020/21: Additional funding
Webpage
Please see the Banking and Finance section for comments on the Draft Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020.
