CISI UK Financial Regulation
Complaints and Redress EXAM
(2025/2026) QUESTIONS AND
(elaborated) ANSWERS WITH
COMPLETE SOLUTIONS
Where are the FCA's complaint handling rules contained? - Answer- Disputes
Resolution Complaints Sourcebook (DISP 1)
What are the Consumer Awareness rules (3) under DISP1.2 for complaints? - Answer-
Firms must :
1. publish a summary of complaints handling processes and their right to complain to
the FOS
2. refer eligible complainants in writing of the summary
3. provide the complaints procedure upon request at any time and when acknowledging
a complaint
What do DISP 1.3 and 1.4 require of firms? - Answer- 1.3 Effective and transparent
complaint handling procedures in place WITHOUT charging a complainant
1.4 When a complaint is received, it must be investigated diligently and impartially and
consider appropriate redress or remedial action
What are the timing for a firm handling complaints according to FCA rules? - Answer-
acknowledge receipt of the complaint in writing
inform complainant of progress
send a written response within 8 WEEKS - final response or holding response
**different timelines for payment/electronic service complaints
What are the complaints record keeping requirements? - Answer- Retained for min 5
years (MiFID) or 3 years for other complaints
Must include: complainant name, substance of complaint, measures for resolution.
How often does the FCA require firms to provide it with periodic reports on complaints?
- Answer- twice-yearly
if more than 500 complains per 6 months
complaints opened
, number closed within 4-8 weeks
number closed >8 weeks
amounts of redress paid
What types of final responses can a firm provide? - Answer- accept complaint -->
redress or remedial action
not accept complaint --> redress or remedial action
reject the complaint and provide reasons why
What must a final response contain? - Answer- If complainant still dissatisfied, can go to
FOS
Copy of FOS leaflet
What must a holding response contain? - Answer- Explanation for delay, indicate when
expect final decision, inform that complainant can now go to FOS, FOS leaflet.
What are eligible FOS complainants? - Answer- consumers
micro-enterprises (<10 employees and BS figure < 2 mil EUR at time of complaint)
SMEs with turnover < 6.5 mil pounds and BS < 5 mil pounds OR <50 employees
charities with income < 6.5 mil pounds at time of complaint
trustee of trust < 5 mil pound assets at time of complaint
personal guarantors of a loan to a business
What is a requirement of a dispute for a complainant to take a claim to the FOS? -
Answer- It must arise out of a business relationship between the complainant and firm.
When are authorised firms, professional clients and ECPs considered eligible
complainants? - Answer- if the complaint occurs wrt an activity for which they are not
authorised (firms) or classified (clients)
How did the revised Payment Services Regulation (2017) alter complaint handling for
certain complaints? - Answer- changed complaint timelines for EMD and PSD
complaints - electronic money holding and payment service user related disputes.
How are EMD and PSD complaints handled? - Answer- firm must send a final response
by the end of 15 business days
if the firm cannot issue a final decision within this timeline, must notify with a holding
response and provide deadline. Send final response within 35 DAYS.
Complaints and Redress EXAM
(2025/2026) QUESTIONS AND
(elaborated) ANSWERS WITH
COMPLETE SOLUTIONS
Where are the FCA's complaint handling rules contained? - Answer- Disputes
Resolution Complaints Sourcebook (DISP 1)
What are the Consumer Awareness rules (3) under DISP1.2 for complaints? - Answer-
Firms must :
1. publish a summary of complaints handling processes and their right to complain to
the FOS
2. refer eligible complainants in writing of the summary
3. provide the complaints procedure upon request at any time and when acknowledging
a complaint
What do DISP 1.3 and 1.4 require of firms? - Answer- 1.3 Effective and transparent
complaint handling procedures in place WITHOUT charging a complainant
1.4 When a complaint is received, it must be investigated diligently and impartially and
consider appropriate redress or remedial action
What are the timing for a firm handling complaints according to FCA rules? - Answer-
acknowledge receipt of the complaint in writing
inform complainant of progress
send a written response within 8 WEEKS - final response or holding response
**different timelines for payment/electronic service complaints
What are the complaints record keeping requirements? - Answer- Retained for min 5
years (MiFID) or 3 years for other complaints
Must include: complainant name, substance of complaint, measures for resolution.
How often does the FCA require firms to provide it with periodic reports on complaints?
- Answer- twice-yearly
if more than 500 complains per 6 months
complaints opened
, number closed within 4-8 weeks
number closed >8 weeks
amounts of redress paid
What types of final responses can a firm provide? - Answer- accept complaint -->
redress or remedial action
not accept complaint --> redress or remedial action
reject the complaint and provide reasons why
What must a final response contain? - Answer- If complainant still dissatisfied, can go to
FOS
Copy of FOS leaflet
What must a holding response contain? - Answer- Explanation for delay, indicate when
expect final decision, inform that complainant can now go to FOS, FOS leaflet.
What are eligible FOS complainants? - Answer- consumers
micro-enterprises (<10 employees and BS figure < 2 mil EUR at time of complaint)
SMEs with turnover < 6.5 mil pounds and BS < 5 mil pounds OR <50 employees
charities with income < 6.5 mil pounds at time of complaint
trustee of trust < 5 mil pound assets at time of complaint
personal guarantors of a loan to a business
What is a requirement of a dispute for a complainant to take a claim to the FOS? -
Answer- It must arise out of a business relationship between the complainant and firm.
When are authorised firms, professional clients and ECPs considered eligible
complainants? - Answer- if the complaint occurs wrt an activity for which they are not
authorised (firms) or classified (clients)
How did the revised Payment Services Regulation (2017) alter complaint handling for
certain complaints? - Answer- changed complaint timelines for EMD and PSD
complaints - electronic money holding and payment service user related disputes.
How are EMD and PSD complaints handled? - Answer- firm must send a final response
by the end of 15 business days
if the firm cannot issue a final decision within this timeline, must notify with a holding
response and provide deadline. Send final response within 35 DAYS.
