Transparency code heralds complaints league table and quicker promotions censure

Complaints data for individual firms will be published in early 2009 under a new draft Code of Practice on Regulatory Transparency set out by the FSA in DP08/3. The regulator intends to focus on firms that receive the largest number of complaints after discovering wide variation in performance of the leading 28: the rate for complaints closed after eight weeks ranged between 1% and 66% while between 3% and 76% were upheld by the firm. Capturing the figures for around 125 firms would account for 95% of all complaints submitted according to the paper and if the catchment were widened to 400 it would cover 95%. Under the proposals information would be presented six-monthly in sortable, tabular form and include statistics on the percentage of complaints dealt with within four weeks; between four and eight weeks; and beyond eight weeks as well as the upheld rate and amount of redress paid. If a complaint was resolved by the end of the next working day it would not be included. The tables would give an absolute number of complaints received, which might be set in context by also providing the number of customers or policies in force. Comparison would be made easier if groups were to break down their consolidated complaints returns by the sectors in which they operate and the FSA would like to see industry agreement on how this should proceed. Aggregated complaints numbers for the industry, covering the first half of 2008, are planned for the end of this year.