Call for single complaints system for new regulators
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A joint committee of MPs and Lords has backed calls for a single independent complaints system across both the Prudential Regulation Authority and the Financial Conduct Authority.
Currently, the Complaints Commissioner investigates complaints against the FSA where the regulator has rejected a complaint about its actions but where the complainant remains unsatisfied.
The draft financial services bill sets out that under the new regulatory structure, complaints against the FCA will be referred to an independent investigator, like the current Complaints Commissioner. But although the FCA complaints investigator is required to be independent and have his appointment approved by the Treasury, the PRA is required neither to appoint from outside the Bank of England, nor to have the appointment approved by the Treasury.
Complaints Commissioner Sir Anthony Holland told a joint committee hearing in October separating the complaint system for the two regulators would lead to less transparency.
In its report on the draft financial services bill published earlier this week, the committee says: “Given the shift in regulatory architecture and culture, it is vitally important for the new regulatory bodies to have effective, independent complaints systems.
“The arrangements in the draft bill do not provide for a sufficiently independent system at the PRA. We believe that the PRA should, mirroring arrangements under the current system, have an independent complaints commissioner whose appointment must be confirmed by the Treasury.
“In order to ensure that complaints concerning co-ordination between the PRA and FCA are properly handled and resolved, we recommend a single complaints commissioner and system covering both the FCA and the PRA.”
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