Amending the complaints process

You are right. There are a number of minor additions that have come into effect from the beginning of this month, which are detailed in the Financial Services Authority Policy Statement PS08/3 (issued in March). There are only two changes of real importance as far as general insurance brokers are concerned.

Firstly, the FSA is concerned that customers are not being made aware in a clear way of their right to refer complaints to the Financial Ombudsman Service, so there is a new requirement to include this information within the text of an acknowledgement letter itself. This statement will be in addition to the full details of the FOS, which must be included in the copy of your firm's full complaints procedure as well as the Ombudsman Service leaflet, which should also be provided either when first responding to the complaint or when issuing the final response.

The other change relates to eligible complainants and means that any person capable of making a direct claim under a policy is also able to make a complaint. This change will affect the example of an individual employee covered under company private medical insurance, though it could also impact on property-owners' policies that are in the joint names of the owner and tenants of the building.

Both developments have been made with the FSA's Treating Customers Fairly principle firmly in mind. This means ensuring that customers receive clear information and making sure that those people with an interest in a policy have suitable redress; this gives a clear steer on the way that the TCF culture should be embedded throughout all processes, procedures and changes within regulated firms.

Also on the subject of TCF, remember that, in the eyes of the FSA, you can meet your obligation to treat your customers fairly only when you are acting within the framework of the rules: make sure that any complaints received are handled according to your documented complaints procedure, particularly where complaints against your firm are a rarity. Remember that, in addition to updating your procedural documentation to incorporate these new elements, you will need to provide and document training on these changes to your staff.