Three day complaint resolution is possible for advisers with the right industry support, according to BareRock CEO and founder, Jonathan Newell.
Newell said the ‘three-day rule’ was designed to benefit customers and advice firms with a mechanism to resolve complaints quickly.
However, he cautioned that using it successfully is hindered by barriers and negative friction points, including Professional Indemnity Insurance claims handling provisions.
“Breaching the three-day limit means firms have no choice but to trigger their formal complaint resolution process,” he added.
“Often, we’re talking about minor issues that could and should be resolved immediately, without PII frustrating the situation.
“The outdated thinking adopted by the legacy market is damaging the reputations of thousands of advice firms.
“This is driving poor customer outcomes because of red tape and a lack of lateral thinking - nobody benefits.”
To address this, BareRock has introduced a “groundbreaking” solution which it said will help firms to comply with the Financial Conduct’s Authority’s time limits.
The solution includes a “unique” clause and specially crafted template wording that enables firms to directly address complaints within the required period, provided that the value of any redress falls, within their excess amount.
BareRock said it allows firms to handle complaints efficiently without risking their PII coverage.
The Verve Group compliance manager, Maddie Delboy, added: “On the surface, the FCA’s three-day summary complaint resolution guidelines feels like the proactive compliance that we like to see and support.
“However, we are well aware that in reality, this resolution is essentially redundant on the basis of the requirement for firms to notify PI insurers, and the mismatch on time scales."
Delboy welcomed the "game-changer" from BareRock, adding it will enable the firms to swiftly resolve complaints.
“This approach shines light on what is proactive compliance, combined with efficient customer service, addressing long-standing industry challenge," she added.
“The positive impact for all will be welcomed.”
tom.dunstan@ft.com
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