Cross border disputes
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Cross-border disputes. Adrian Dally Head of Policy. Financial Services & Markets Act 2000. a statutory footing. we are the statutory ADR scheme set up by Parliament. Financial Conduct Authority (the regulator).

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Cross-border disputes

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Cross border disputes

Cross-border disputes

Adrian Dally

Head of Policy


A statutory footing

Financial Services & Markets Act 2000

a statutory footing...

we are the statutory ADR scheme

set up by Parliament

Financial Conduct Authority (the regulator)

Financial Ombudsman Service (adjudicates on unresolved disputes)

Financial Services Compensation Scheme

(fund of last resort)


Our role

our role…

we are tasked with resolving individual disputes “quicklyand withminimum formality”

  • our job is to settle individual complaints:

    • fairly

    • quickly

    • reasonably

    • informally

  • we cover all retail financial businesses based in the UK…

  • …and some based elsewhere in the EEA who have joined voluntarily

  • it does not matter where the complainant lives – anywhere in the world.


The process

the process…

2

mediated settlements

adjudicator

assessment

customer

contact

team

formal conclusions

adjudicator investigation

to ombudsman

unable to resolve


The number of new cases

300000

280000

260000

240000

220000

200000

180000

160000

140000

120000

100000

80000

60000

40000

20000

0

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

the number of new cases...

year ended 31 March


Accessibility matters

accessibility matters…

some groups of consumers find it harder to complain than others

so we try to make it easier to contact us

The problem – in the past, we had fewer complaints from:

  • younger consumers

  • consumers from ‘lower’ socio-economic groups

  • consumers with disabilities

  • consumers whose native language was not English…


Accessibility matters even more

accessibility matters even more…

…because this reflected deeper issues

in society as a whole…

…and we realised from stakeholder research that:

  • consumers from ‘lower’ socio-economic groups were more likely to experience detriment from financial businesses

  • the average UK / EU reading age was 11

  • even in 50 years time, we will still have to deal with many consumers ‘off-line’


What we did

what we did…

we made it easier to contact us

by removing as many barriers as we could

  • specially-trained team of front-line advisers to work with vulnerable consumers

  • work with front-line community and advice workers to reach ‘lower’ socio-economic groups

  • three-way telephone conversations

  • on-line video and audio content

  • text-relay and sign-language

  • information in alternative formats – e.g. large print, CD/DVD, EasyRead


Language matters too

language matters too…

in 2012 we had 1910 complaints from outside the UK

from 104 different countries

in 46 different languages

We handled this by:

  • instant over-the-phone interpretation

  • translation of correspondence

  • website information in 25 languages

    Total of 2282 cases handled in languages other than English or Welsh – 25% in non-European languages


The results so far

the results so far…

morecases from ‘lower’ socio-economic groups

and from those with a disability

or from non-white backgrounds

Some positive progress, for example:

  • cases from unskilled consumers 5%  12%

  • cases from skilled / semi-skilled consumers 36%  54%

  • cases from professional / managerial consumers 59%  34%

  • 21% of complainants have a disability (18% in population)

  • cases from non-white consumers 8%  12%

    …with no difference in outcomes between groups


Cross border disputes matter

cross-border disputes matter…

The internal market in financial services is growing

  • 4% of EU citizens holdingshares, bonds or investment funds bought them in another Member State,

  • 3% of EU citizens havinga bank account opened itin another EU country,

  • 2 % of those witha mortgage, credit card or personal loan bought their product in anotherEU country and

  • 1% of those havingan insurance product bought it in another Member State.


So we have finnet

so we have FinNet…

…to help consumers find the right ADR body when they complain about a trader in another member state

  • the consumer contacts the nearest (home) ADR body.

  • the nearest ADR body provides the consumer with the information about the ‘competent’ ADR body in the country of the financial services provider

    then

  • the home ADR body sends the complaint to the ‘competent’ ADR body (or helps the consumer to do so)


Finnet coverage

FinNet coverage…

…is getting better, but there are gaps


Finnet coverage continued

FinNet coverage (continued…)


Finnet s caseload

FinNet’s caseload…

…is growing


The challenges ahead

the challenges ahead…

…there are a number of challenges if ADR is to achieve its full impact

  • achieve fuller coverage

  • better accessibility for all consumers – not just on-line

  • better visibility and branding

  • better links with regulators

  • better added value through transparency


Cross border disputes

Any questions?


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