Latest Poll – Fit-for-Purpose Complaint Processes?

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Our latest poll is asking advisers to consider whether your firm’s complaints processes are genuinely easily accessible for customers and are fit-for-purpose.

Our question follows news that the Financial Markets Authority “strongly encourages” companies to review their complaints processes, stating that financial service providers “…should be visible, easy to complain to, accessible, fair, transparent and proactive when dealing with complaints.” (See: Companies Encouraged to Review Complaints Processes).

The FMA says its research Why don’t consumers complain? found fewer than a third of people are confident that they know how to complain about their financial service provider.

“Furthermore, those who said they would have liked to complain, but didn’t, cited barriers such as doubts about the outcome, not knowing how to complain, and perceptions of difficulty,” the regulator says.

In conjunction with the research, an information sheet Complaints: Ensuring consumers are treated fairly has been published by the FMA which says financial service providers need to ensure consumers know how to complain and how their complaints will be dealt with.

FMA Executive Director, Licensing and Conduct Supervision, Clare Bolingford says companies “…are burying complaints processes deep on their websites, requiring details a customer may not have to hand and treating customers in a defensive and dismissive way.”

As background, the FMA lays out key questions for firms including:

• Can you point to how you are set up to resolve complaints, so that customers feel listened to and treated fairly?
• Do you have processes in place to take on board lessons learnt from complaints into your products and services going forward?
• Are your complaints processes well signposted?
• Are customers given the impression that you welcome the opportunity to put things right and understand where to improve?

Could you, hand on heart, answer those FMA questions in the affirmative? We’re keen to understand where your firm sits and will report back on the results next week…