Revised U.K. Financial Regulators' Complaints Scheme Key Changes and Implications

This presentation outlines the significant updates to the U.K. Financial Regulators' Complaints Scheme, effective from November 1, 2023. It highlights the introduction of discretionary compensation bands for non-financial loss, the controversial "sole or primary cause" test for financial loss compensation, and the removal of the proposed cap on compensation payments. Additionally, it covers the simplification of the Scheme's language and HM Treasury's enhanced role in appointing the Complaints Commissioner. These revisions aim to create a more transparent, accessible, and fair process for managing complaints against U.K. regulatory bodies.

1. Overview of the Revised U.K. Financial
Regulators' Complaints Scheme

2. Introduction to the Revised Complaints
Scheme
Collaboration between FCA, PRA, and Bank of England on the
revised Complaints Scheme.
The framework aims to improve the protocol for handling
grievances against U.K. regulatory bodies.
Significant changes introduced to enhance transparency and
fairness.

3. Discretionary Compensation for Non-Financial
Loss
Introduction of discretionary compensation
bands for non-financial loss.
Compensation ranges from £100 for minor
issues to over £2,500 for severe cases.
Focus on addressing stress, inconvenience,
and other non-financial impacts of regulatory
failings.

4. "Sole or Primary Cause" Test for
Financial Loss
New criterion for compensation: the "sole or primary cause" test.
Regulators must be significantly at fault to trigger financial loss
compensation.
Removal of the proposed £10,000 cap on compensation for
financial loss.
This test has sparked debate due to its restrictive nature.

5. Simplification and HM
Treasury's Role
Simplified language and visual aids
introduced for easier understanding of
the Scheme.
HM Treasury’s role in appointing the
Complaints Commissioner aligned with
the Financial Services and Markets Act
2023.
These changes aim to create a more
accessible and transparent complaints
process.

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