Complaints handling, redress and the Financial Ombudsman Service
Internal complaints
Under DISP, a complaint is any oral or written expression of dissatisfaction, whether justified, about a firm's provision of a financial service. Firms must operate an internal complaints procedure, investigate promptly and fairly, and send a final response within eight weeks. If a complaint is resolved by close of the third business day, a summary resolution communication can be used. The final response must explain the FOS and the six-month referral window.
The Financial Ombudsman Service
The FOS is a free, independent statutory dispute-resolution scheme. It has compulsory jurisdiction over FCA-authorised firms and voluntary jurisdiction over some others. It can consider complaints within six months of the firm's final response, and normally within six years of the event or three years from when the complainant ought reasonably to have known about it. The ombudsman can order a firm to put matters right and pay compensation up to the award limit, which is uprated periodically. A decision accepted by the complainant binds the firm; the complainant may still go to court. The FOS cannot fine a firm or award punitive damages, though it can compensate for distress and inconvenience.
Redress and the FSCS
If a firm fails, the Financial Services Compensation Scheme may pay compensation, subject to limits and eligibility. The FSCS is separate from the FOS.
Traps
The eight-week clock runs from receipt of the complaint. The six-month referral window runs from the final response, not the event. The FOS is not a regulator and does not set rules.
Rule of thumb
Final response on 1 June = complainant can refer to the FOS until 1 December.