Super-complaints

12 March 2013

Designated consumer bodies will be able to make super-complaints to the Financial Conduct Authority (FCA). The FCA will have a duty to respond within 90 days. The FCA’s response might, for example:

announce plans to consult on an issue;
set out a timetable for regulatory action which would allow the Financial Ombudsman Service (FOS) to consider whether or not to place a hold or stay on complaints;
explain how the FCA is already taking action to address an issue; or
explain why it is not taking any action.

What is a super-complaint?

The Financial Services and Markets Act 2000 (“the Act”) gives designated consumer bodies the right to make a “super-complaint” to the FCA where they consider that there are features of a market in the United Kingdom for financial services, (such as the market structure or the conduct of firms operating within it) that are or which may be significantly damaging the interests of consumers.

The FCA super-complaints regime for financial services markets is distinct from the cross-sectoral super-complaints regime provided for in the Enterprise Act 2002. Separate guidance for consumer bodies that wish to be designated as “super-complainants” under the Enterprise Act regime is available on the website of the Department for Business Innovation and Skills.

Who can bring a super-complaint to the FCA?

Only bodies designated by the Treasury can bring a super-complaint to the FCA.

The FCA has been given the ability to accept super-complaints in order to strengthen the voice of consumers of financial services, as they are unlikely to have access individually to the kind of information necessary to judge whether markets are failing for them. Consumer groups can access individuals’ complaints to form a judgment on whether there is a problem and then take the necessary action.

However, it is important to remember that any body can still bring complaints to the FCA or the FOS. Super-complaints simply provide a fast-tracked route into the system to ensure that complaints about market failure which harms consumers are given consideration within a fixed time, and that the regulator is accountable for providing a response.

How can a consumer body be designated?

Guidance for firms seeking designation as super-complainants to the FCA is available at the link below:

Guidance for bodies seeking designation as super-complainants to the Financial Conduct Authority (PDF 219KB)

The first round of designations will be made later this year.

The application period for the first round of designations will close on Tuesday 4 June 2013.

Applicants are encouraged to submit an application to the Treasury at the earliest available opportunity within the period.

Following the end of the consultation period applications will be posted on the Treasury website for a period of 12 weeks. The Treasury will consider comments received on applications during that period.

Applications via email should be submitted to super-complainants@hmtreasury.gsi.gov.uk.

For further information on applying for designation, please contact:

James Aitken
Financial Services Group
HM Treasury
1 Horse Guards Road
London
SW1A 2HQ

Tel: 020 7270 6152

E-mail: super-complainants@hmtreasury.gsi.gov.uk

Super-complaints

What is a super-complaint?

Who can bring a super-complaint to the FCA?

How can a consumer body be designated?

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