Complaints handling and limitation defences

The efficiency of complaints handling is not just a regulatory issue but is also one which impacts upon the commercial well-being of an authorised firm. John Virgo, barrister and Philip Ryley, solicitor, examine a recent High Court judgment which may have far-reaching consequences as to how complaints may be handled in the future when an issue of limitation arises.

On 2 August 2002 the High Court gave judgment in a preliminary issue in Rainbird v Allied Dunbar . The decision raises interesting issues in relation to the handling of complaints by authorised firms and the relationship between their complaints handling internal procedures, the workings of the Financial Ombudsman Service and the provisions of the Limitation Act .