FCA customer complaints report: London’s FX industry displays excellent ethics

Rick Steves

The Financial Conduct Authority (FCA) has published a report regarding customer complaints in H2 2015 revealing a drop by 1.4% in a total of 2.11 million, with general insurance and pure protection accounting for 59%, while banking and credit cards representing 32%, home finance with 4%. Decumulation, which is the process of converting pension savings to […]

Canary Wharf

The Financial Conduct Authority (FCA) has published a report regarding customer complaints in H2 2015 revealing a drop by 1.4% in a total of 2.11 million, with general insurance and pure protection accounting for 59%, while banking and credit cards representing 32%, home finance with 4%.

Decumulation, which is the process of converting pension savings to retirement income, accounted for  3% of total complaints, and the investment sector amounted to 2% of all complaints (broken down to personal investment (1%) and investment management (1%).

While complaints regarding investment products proved to be a very small fraction of the total reported by the FCA, these products are the most complex and hardest to close within eight weeks. The rate of closure has been dropping from 90% since 2013 H2, and seems to be stabilizing between 84% and 86%.

A particular point of interest with regard to the FCA’s statistics in this report is that FX firms on the retail and institutional side of the business fared the best in terms of their commercial etiquette, with absolutely no FX firms having been the subject of concern in any area, reinforcing London’s position as a bastion of good business practice, especially toward customers.

fca complaints

Source: FCA

 

The number of investment related complaints has been in an upward trend between 2010 H1 and 2015 H1, but the last semester saw a drop by almost 20% (9,107) in 2015 H2 to 36,963.

This includes a 15% fall in complaints related to PEPs/ISAs (excluding cash ISAs) to 11,848 and a continued decline in complaints related to investment bonds, to 6,202 in 2015 H2 from a high of 12,306 in 2011 H1. However, this goes in line with the drop in the sale of investment bonds and continued low investment bond yields over the same period.

Given that the first half of 2015 (from January to June) saw complaints declining by 54%, today’s news are not as cheerful, but point to a continuation. Christopher Woolard, Director of Strategy and Competition said:

“It is positive to see that the longer term reduction in the volume of complaints has continued into the latest period. Firms seem to have taken on board our previous feedback on levels of complaints and we are slowly seeing firms address these issues, however, firms still need to do all they can to reduce complaints and ensure that they are working in the best interests of consumers.”

When it comes to investment products, HSBC Bank Plc saw complaints rising from 2,759 (H1 2015)  to 3,007 (H2 2015), as well as Barclays Bank Plc, from 2,759 to 2,880. On the other hand, the number of complaints dropped for the following companies: Equiniti Financial Services Limited, at 1,567 (from 1,626), and The Prudential Assurance Company Limited, at 1,212 (from 1,532).

Santander UK Plc had the sharpest drop in complaints, coming from 4,375 to 1,375, approximately a third. Having been rated the worst bank in the UK for customer service frequently, the firm has been tackling many issues as it considers an initial public offering (IPO) since 2014, pending until further notice while market conditions prove to be stormy.

 

Read this next

Digital Assets

TRON approves Wintermute to mint, burn USDD stablecoin

TRON Reserve DAO has welcomed crypto market-making giant Wintermute as the ninth member and whitelisted institution to mint Tron network’s stablecoin, Decentralized USD (USDD).

Metaverse Gaming NFT

Nas Academy and Invisible College introduce innovative model for Web3 education

Singapore-based online learning platform, Nas Academy is joining forces with Invisible College to teach people everything they need to know about the Web3.

Digital Assets

Top exec at BitMEX pled guilty US Bank Act violations, pays $150K fine

BitMEX’s head of business development, Gregory Dwyer pled guilty to violating the US Bank Secrecy Act (BSA) and allowing customers to use the platform to circumvent the federal anti-money laundering rules.

Retail FX

CySEC slaps €150,000 fine on FXBFI, operator of 101investing brand

The Cyprus Securities and Exchange Commission (CySEC) today announced that it has reached a settlement with FXBFI Broker Financial Invest Ltd, trading as 101investing, ordering the firm to pay €150,000 for violating the Investment Services and Activities and Regulated Markets Law.

Retail FX

X Open Hub expands multi-asset offering with new cryptocurrencies and indices

X Open Hub, a multi-asset liquidity provider, announced today that it has extended its offering with inclusion of 30 new cryptocurrencies and two emerging market indices.

Retail FX

Interactive Brokers now offers 24/7 access to crypto trading

Interactive Brokers Group, Inc. (NASDAQ: IBKR) has widened access to cryptocurrency trading for its clients. Specifically, the discount broker extended trading hours for its cryptocurrency products to be traded 24/7, including on the weekends.

Inside View

Natural Language Generation for Multi-Language Social Media Strategies 

Natural Language Generation (NLG) is a crucial growth area in the digital landscape, with the unique potential to be used across multiple industries.

Market News, Technology

The B2Core Android App is Now Available For Download

The first version of the B2Core Android app is available for download, and it has many beneficial features for users.

Digital Assets

XBO taps custodian Fireblocks ahead of crypto exchange’s launch

XBO.com has integrated with digital asset and crypto technology platform Fireblocks ahead of the crypto exchange’s upcoming launch.

<