Ongoing client service, reviews and complaints handling
What the exam tests
This domain tests the service lifecycle: agreed reviews, monitoring suitability, handling complaints fairly and using remediation when something has gone wrong.
Core rules
- Agree the scope and frequency of ongoing service with the client, and disclose any ongoing fee. If the client receives no service, charging a fee is hard to justify.
- Reviews should revisit goals, circumstances, risk profile, product performance against objectives, fees and cover. Triggers include job loss, illness, divorce, a new dependant, market falls and product changes.
- A complaint is any expression of dissatisfaction, however made. Operate an internal complaints process: acknowledge, investigate, respond within stated timeframes and record everything.
- FAPs must belong to an approved dispute resolution scheme (for example FSCL, IFSO or the Banking Ombudsman). If the complaint is not resolved within two months, the client can refer it to the scheme.
- Remediation: identify affected clients, correct the advice or product, compensate where appropriate and record the root cause.
Worked example
A client complains that their balanced fund fell 8% and "should not have". The adviser reviews the file: the risk profile, capacity, disclosure and review notes show the risk was explained. The adviser responds promptly, explains market movements, checks whether circumstances have changed, and offers a review. If the file showed the client needed the money in a year, the advice would be unsuitable and remediation would be required.
Traps
Calling a complaint a "query"; failing to log it; missing the two-month referral point; defending past performance instead of checking suitability; charging for reviews not delivered; not fixing the cause after remediation.