Complaints against FSA soar 129%

The number of complaints received by the FSA last year soared 129% on the previous 12 months, the regulator reveals today.

In its 2008/9 annual report, it says it received 492 complaints between 31 March 2008 and 31 March 2009, an increase of 277 from the 215 logged in the previous financial year.

Of the 470 it 'resolved', 400 were from consumers while 70 were from authorised firms or their representatives.

However, the regulator says it received a total of 2,176 enquiries in 2008/9 that did not fall within its complaints scheme, an increase from 1,423 in 2007/8.

These matters, it says, were instead referred to either its Consumer Contact Centre, other parts of the FSA, the FOS or the FSCS.

The FSA's complaints procedure operates in two stages. Firstly it attempts to deal with the query internally, known as 'stage one'. If the complainant remains dissatisfied, the matter is referred to the Independent Complaints Commissioner (ICC), Sir Anthony Holland (stage two).

The FSA says it made eight ex-gratia awards following stage one investigations, totalling £12,350.

Of the 17 cases sent to the ICC, Sir Anthony Holland agreed with the FSA's original decision in 15 of them. The remaining two fell outside the report period.

Most of the allegations related to a lack of customer care and the regulator's "supervision" of firms, it says. It adds the majority of complaints resulted from "recent market conditions".

"A significant number of complaints from consumers were about specific financial institutions and the FSA's alleged failure to supervise them adequately," the report reads.

scott.sinclair@incisivemedia.com