FCA Complaints Handling Changes – A Big Opportunity For Financial Firms

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On Thursday, the FCA published their updated rules on complaints handling and call charges following an extensive review and consultation process. The headlines are an end to premium rate numbers and an extension to the ‘next business day’ rule for handling complaints less formally from 1 day to 3.

It was a third announcement though that may well have the most interesting repercussions.

Firms will now be required to report all complaints, including those handled by the close of three business days. This is primarily being billed as a benefit to customers, giving them access to a wealth of data and making the process more transparent in all cases. However, Christopher Woolard, director of strategy and competition at the FCA hinted at why this is also a good thing for firms too when he said ‘effective complaints handling systems can act as an early warning system for firms’.

This new wealth of information will provide companies with huge insight into the root cause of complaints and allow them to be proactive in making operational changes to ensure their customer satisfaction increases.

Of course, the benefits can only be realised if there is an effective system in place for managing and reporting on complaints. Moreover, the changes mean an inevitable increase in the volume of complaints that must be reported on. Storing them offline in spreadsheets is going to quickly become a compliance nightmare.

The importance of a software solution for handling complaints has never been bigger. At a minimum it should allow users to quickly create complaint records, generate documentation, include task-based workflow to integrate operational teams with compliance departments and produce rich reports.

Get in touch with us for a free demo of our LEAP-powered Complaints Handling system. The flexibility of LEAP means we can completely  tailor it to fit around your business and ensure you remain compliant. There’s no up-front cost, a simple licence model and a wealth of great features.

Read more about our powerful Complaints Handling solution HERE.