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FSA outlines FCA super-complaint regime

FSA outlines FCA super-complaint regime

The Financial Services Authority(FSA) has outlined how its successor the Financial Conduct Authority will deal with super-complaints to protect consumers from wide spread market failures such as the mis-selling of payment protection insurance (PPI).

A super-complaint is a complaint by a designated consumer body alleging that a feature or a combination of features of the market for financial services in the UK is significantly damaging the interests of consumers.

Through the Financial Services Act, designated consumer bodies, regulated persons and the Financial Ombudsman Service (FOS) will be able to make a super-complaint to the FCA.

The proposals outline evidence needed to support super-complaints and references and how it will be handled by the new regulator.

Evidence to the FCA for a super complaint should include details of the market, the sale or distribution practices that could have an impact on consumers, who they would have an impact on and if possible an extent of damage it could cause.

The FCA will be required to respond to a super-complaint or reference within 90 days setting out how it proposes to deal with the complaint and any possible actions.

It can also carry out wider enquires with a view to testing the evidence like internal research, public requests of information and carry out a review of the relevant regulated firms.

Complainants will be able to decide whether or not to publicise the super complaints but the FCA will be required to publish the response to the super complaint.

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