R01 Complaints and the Financial Ombudsman Service: free practice questions
5 free questions on Complaints and the Financial Ombudsman Service, part of learning outcome 6 (Applying the rules). Pick an answer to check it, or open the answer to see why each option is right or wrong.
Question 1 of 5
How does the FCA define a complaint?
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The answer is D: Any expression of dissatisfaction alleging loss or distress
A complaint is any oral or written expression of dissatisfaction, whether justified or not, about a financial service, alleging financial loss, material distress or material inconvenience.
Why the other options are wrong
A
The definition isn't limited to investment performance.
B
Complaints start with the firm, not the FOS.
C
Complaints can be oral and needn't be justified.
Question 2 of 5
By when should a firm normally send its final response to a complaint?
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The answer is A: Within eight weeks of receipt
Firms should send a final response within eight weeks. If they can't, they must explain why and tell the complainant they can now go to the FOS.
Why the other options are wrong
B
One year is far too long.
C
Five business days relates to referring a complaint to another firm.
D
Six months is the time to refer to the FOS after the final response.
Question 3 of 5
Which of these is an eligible complainant for the FOS?
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The answer is C: A charity with annual income under £6.5m
Eligible complainants include consumers, micro-enterprises, charities with income under £6.5m, trusts with net assets under £5m, small businesses (turnover under £6.5m and fewer than 50 staff, or balance sheet under £5m) and guarantors.
Why the other options are wrong
A
Large pension funds aren't eligible.
B
Large companies aren't eligible.
D
Local authorities aren't eligible.
Question 4 of 5
On what basis does the FOS decide complaints?
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The answer is B: On what is fair and reasonable in all the circumstances
The FOS decides what's fair and reasonable, taking account of law, FCA rules, guidance and good industry practice. It isn't bound by legal precedent.
Why the other options are wrong
A
Customers' views aren't the basis.
C
The firm's policy isn't the standard.
D
The FOS isn't bound by law or precedent alone.
Question 5 of 5
Who must have responsibility for the complaints handling function in a firm?
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The answer is B: A senior person in a governing function
Firms must nominate a senior individual in a governing function to oversee complaints handling, ensuring enough resources and that root causes are addressed.
Why the other options are wrong
A
The firm nominates someone; the FCA doesn't choose.
C
FOS staff aren't responsible for firms' complaints functions.
D
The auditor doesn't run complaints handling.
Practise all 14 Complaints and the Financial Ombudsman Service questions
These are 5 of the 14 questions on this topic in R0 Exam Prep, and the full R01 bank covers every learning outcome. Practise free, track your weak areas and sit timed mocks.
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