BANKSETA Sponsored Project

Introduction

Module 4: Lesson 1

FAIS
LEARNING GUIDE / MODULE 4
LESSON
1
Inter-Bank Compliance Training Project Sponsored by BANKSETA
Introduction
to
Complaints
Topics:
1 The FSP’s Complaints resolution process
2 The Ombud’s Complaints resolution process

Page 8

Learner guide Developed by Gray Training 011 472 3516 Jan 2004

BANKSETA Sponsored Project

Introduction

Module 4: Lesson 1

INTRODUCTION

Link / Up to this point we have learned:
·  Who are the parties to a financial service
·  The various duties and responsibilities of these parties
·  The various Codes of Conduct that apply to the parties to the financial service.
We are now going to look at what happens when a complaint arises in respect of a financial service.
In this module we look at the complaints procedure as set out in FAIS and look at the duties and functions of all parties involved in resolving complaints.
Learning outcomes / There are two learning outcomes to this lesson:
·  Explain the FSP’s complaints resolution process
·  Explain the Ombud’s complaints resolution process.

Page 8

Learner guide Developed by Gray Training 011 472 3516 Jan 2004

BANKSETA Sponsored Project

Introduction

Module 4: Lesson 1

L/O #1 FSP’s COMPLAINTS RESOLUTION PROCESS
L/O #1 / Explain the FSP’s complaints resolution process.
Complaints process
/ The FSP’s complaints process is a four-step process:
Step1
·  The complainant submits the complaint to the FSP
·  The FSP assists with the recording and the lodging of the complaint to:
o  ensure all relevant facts and documents are included
o  Include contact details of staff member handling complaint
·  The FSP follows its routine procedure to resolve the complaint by:
o  Acknowledging receipt of complaint in writing
o  Accurately recording client and complaint details in complaint’s register.
Step 2
If the complaint cannot be resolved in a routine manner, the FSP then escalates the complaint to a person or forum in the company who has the authority in terms of their internal complaints procedure to make a decision.
Step 3
Should this person or forum not be able to resolve the complaint to the client’s satisfaction within 6 weeks, the client must be advised of their right to pursue that complaint with the Ombud.
Step 4
To avoid recurrences of the problem, FSPs are required to:
·  Identify the root cause of the complaint
·  Improve systems and procedures.

Page 8

Learner guide Developed by Gray Training 011 472 3516 Jan 2004

BANKSETA Sponsored Project

Introduction

Module 4: Lesson 1

L/O #1 FSP’s COMPLAINTS RESOLUTION PROCESS - cont.
The FSP’s Complaints process / This diagram presents a diagrammatic view of the FSP’s complaints process.

Page 8

Learner guide Developed by Gray Training 011 472 3516 Jan 2004

BANKSETA Sponsored Project

Introduction

Module 4: Lesson 1

L/O #2 OMBUD’s COMPLAINTS RESOLUTION PROCESS
L/O #2 / Explain the Ombud’s complaints resolution process.
This diagram sets out the Ombud’s complaints process.
The Ombud’s complaints process
/

Page 8

Learner guide Developed by Gray Training 011 472 3516 Jan 2004

BANKSETA Sponsored Project

Introduction

Module 4: Lesson 1

CONSOLIDATION
Summary / In this lesson we have sketched the complaints process.
Activity 1 / Now spend ten minutes considering the following questions:
Why is it important to have an internal complaints resolution process in the organisation?
List as many reasons as you can why it is important to have an internal complaints resolution process.

Page 8

Learner guide Developed by Gray Training 011 472 3516 Jan 2004

BANKSETA Sponsored Project

Introduction

Module 4: Lesson 1

CONSOLIDATION – cont.

Check your thinking –
Activity 1 / You should have included some of the following in your answers:
·  Clients who are unhappy pose a reputational risk
·  Redress must be readily accessible to the client to avoid prejudice
·  It provides the client with a cost effective resolution system
·  Timeous and accurate complaint resolution can lead to improved customer service.
Apply the learning to your environment / Stop for a minute to consider what you would do if you purchased a product from a store and something went wrong with that product.
Your initial reaction is to take that product straight back to the store that you bought it from. You expect the staff and management of that particular store to help you with your complaint, since they sold you the defective or inappropriate merchandise in the first instance.
An effective internal complaints resolution process is a requirement for compliance with FAIS. It is, however also in a FSP’s best interests to attempt to resolve all complaints received from clients.
This will ensure that a FSP’s reputation remains intact and that clients return to that FSP when they are in the market for a financial product.

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Learner guide Developed by Gray Training 011 472 3516 Jan 2004

BANKSETA Sponsored Project

Introduction

Module 4: Lesson 1

ASSESSMENT

Test your knowledge & understanding / Answer these short questions to test your knowledge and understanding of this material. Choose the right answer.
Statement / True/False?
4.1.1 / The complainant can only submit a complaint directly to the FSP Ombud if it has not been resolved by the Ombud.FSP.
4.1.2 / The FSP does not need to respond in writing when a complaint is lodged.
4.1.3 / To avoid recurrences of the problem, FSPs are required to:
·  Identify the root cause of the complaint
·  Improve systems and procedures.

Page 8

Learner guide Developed by Gray Training 011 472 3516 Jan 2004