Recommendations for the Financial Services and Pensions Ombudsman
In accordance with leading practices, the FSPO should adopt a more proportionate and preventative approach to dispute resolution.
This would require making more resources available to provide information and guidance to
complainants and providers which empowers them to resolve their disputes early and at source.
The figure below provides an overview of the structure of the proposed FSPO organisation with a particular focus on the approach to dispute resolution. The model proposed is based on developing a preventative model which provides both consumers and providers with information and guidance that supports the early resolution of dispute.
Informal techniques should be used to deliver a service that is speedy and effective and puts the needs of service users at its core. This includes using clear, plain English in all written and verbal communications and avoiding the use of overly technical terminology.
To achieve these goals, the FSPO scheme should take a proactive approach to providing service users with information and case studies that are relevant to their complaint in order to manage their expectations of what the scheme will and will not do. The approach applies to all parties - both consumers and providers.
Once complaints are received, they should be assigned to a case officer who works with the parties to achieve an early and fair resolution to the issue in dispute. In the first instance, this should involve speaking with both parties to understand the issue in full. This would initially focus on the complainant by using open questioning techniques to talk through the issue and understand the outcome that the complainant is seeking. The provider should then be consulted to understand the measures taken to resolve the complaint and, if the case officer feels the provider did not fully understand the complaint, the provider may be requested to reinvestigate the issue and to prepare a new response letter.
If an immediate resolution is not achieved, the case officer would continue to work with the parties to resolve the complaint through informal means. Where possible, communication should be by telephone and electronic means (e.g. email) which should reduce the delays associated with the exchange of written documents. Parties in the complaint should have access to an online portal which provides them with a view of the case status and access to relevant case documentation.
Access to subject matter experts within FSPO or externally should be arranged for any case officer who requires specialist product or legal input/advice.
By engaging with the parties directly, the case officer can capture the detail behind the issue in the manner best suited to the parties involved. More importantly, it should allow them to build trust with the parties which is essential to achieving a timely and satisfactory resolution.
In the event that the complaint does need to progress to a formal adjudication stage, the case officer would complete their investigation and prepare the complaint file for adjudication. This includes a summary of the issue which provides the parties with clarity on the points of fact to be assessed by the adjudication officer. By engaging an experienced case officer early in the process, the overall quality of the complaint description would be improved which would ultimately aid the adjudication process because it has been updated by the case officer during the course of the investigation and by the provider's responses.
The complete file would then be passed over by the case officer to an adjudication officer for review and recommendation. The adjudication officer is a separate individual who has not had a relationship with either party. The case officer still remains available to the parties and continues to monitor the progression of the case. This model allows the case officer develop a trusting relationship with the complainant which is essential for case progression and open communication. Where appropriate, the case officer’s role can act to redress the balance between the complainant and their provider.
The adjudication officer's recommendation is based on the facts of the case as presented and is arrived at in an impartial and independent manner. Their Preliminary Finding is shared with the parties allowing them to raise any concerns about points of fact. The case officer remains available to respond to any questions and explain the outcome to the parties if required.
Any additional points of fact raised by the parties should be considered and the Preliminary Finding updated accordingly. In the event that no new information comes to light, the adjudication officer’s Preliminary Finding would be forwarded to the Ombudsman for final decision.
Throughout the process information would be captured on the nature of complaints and enquiries received. During the early resolution stage, details of interventions and outcomes should be recorded.This would allow future analysis which would help inform the scheme on the most effective techniques to use in given circumstances, and the ability to monitor changing trends in complaints.
Sharing case studies which provide an overview of the different outcomes from various types of cases - including those that were adjudicated upon and those that were resolved informally - should be made available to all stakeholders through a web portal to support greater understanding by the Public as a whole.
The proposed changes should result in a significant reduction in the amount of time spent dealing with complaints that can be resolved informally, which would in turn create capacity to focus more on preventative measures and personal development goals.