Compliance disputes - and barely an Ombudsman in sight

In previous articles, Adam Samuel has looked at complaint handling under the FSA’s DISP rules. To most compliance specialists, dealing with consumers who are able to refer their causes of dissatisfaction to the Financial Ombudsman Service is dispute resolution in the compliance field. However, he argues, the subject is much larger and more incoherent. Compliance and complaint handling functions have to be aware of a variety of conflicts which cannot be referred to FOS and for the most part are not governed by the FSA. In some areas, the law and even professional bodies have imposed some order. In general, though, dispute resolution within the financial services industry remains a matter of chance and financial muscle, rather than anything related to fairness and justice.

Adam Samuel BA LLM MSFA MAQ, compliance and complaint handling consultant and trainer, can be contacted on tel 020 7586 1938; email AdamSamuel@aol.com, website www.adamsamuel.co.uk

Upholding complaints against individuals

When paying compensation to a dissatisfied customer, a firm has to decide whether to log the complaint against an individual. There is nothing in the rules that says this as such. DISP does not refer to recording cases in this way. The concept is introduced in the rules through the back door.