The Financial Conduct Authority (“FCA”) has published the latest complaints data showing the number of complaints firms received across the first half of 2023.
Under FCA rules (DISP 1.10), regulated firms must report the number of complaints they have received twice a year. However, there are some firms which are only required to report complaints data once per year such as firms which carry on only credit-related regulated activities or operating an electronic system in relation to lending and have a revenue arising from those activities that is less than or equal to £5,000,000 a year, regulated claims management activities and regulated funeral plan activities.
About the complaints data
The FCA requires firms to collect and report complaints data which allows the regulator to monitor firms by reviewing;
- the number of complaints received
- how this changes over time
- which products or services consumer have complained about the most
This data is used to assess how well firms are treating their customers and how their performance changes over time. This helps to inform the FCA’s supervision activities.
Principal firms must report data relating to their ARs including information about revenue and complaints. Principal firms must ensure that they collate this data from their Appointed Representatives (“ARs”) and submit through the FCA’s RegData system.
What is included in the data
The data published by the FCA shows information such as;
- the total number of opened, closed, and upheld complaints, in relation to the size of the market or firm
- the amount of redress paid
- the type of firm the complaint was about
- the type of product the complaint was about
- the reason for the complaint
What the data shows
In the first half of 2023, firms received 1.88m opened complaints. This showed a 5% increase from the number of complaints received in the previous 6 months (1.80m between 1st of July – 31st of December 2022).
Some product groups experienced an increase in their opened complaint numbers, including:
- Decumulation & pensions: 20% increase.
- Investments: 18% increase.
- Insurance & pure protection: 6% increase.
- Banking and credit cards: 3% increase.
There has also been some noticeable increases in opened complaints across the following products:
- Motor & transport saw an increase from 238,009 in the second half of 2022 to 278,034 in the current reporting period which reflects a 17% increase.
- Credit cards and property both saw a 7% increase.
- Savings (including ISAs) saw the biggest increase of 23%.
Current accounts remain the most complained about product.
Redress payments increased by 4% from £228m to £236m across the two periods.
How can firms use the data
Complaints are an important indicator as to whether customers are receiving good outcomes as set out in the FCA’s Consumer Duty and under Principle 12. The data also helps to highlight key risk areas which the FCA may choose to focus on through their supervision work.
It’s important that firms use complaints data as part of their management information and conduct root cause analysis as to how they can prevent consumer harms.
We provide full-service support to firms within our Appointed Representative network so that they can expand their business and increase revenue without risking consumer harm and drawing regulatory enforcement. We also provide support to regulated firms through our online learning environment with courses focusing on modules such as Consumer Duty, Treating Customers Fairly and Financial Crime.
To learn more, contact us on 01423 613335 or email us at info@consumercreditcompliance.co.uk.
