A stable, well-functioning financial market for allA stable, well-functioning financial market for allProcessing of complaints in the financial sector
Finansinspektionen (FI) has studied how well companies follow FI's regulations and general guidelines regarding the processing of complaints. The study included 196 companies in the banking, fund management, securities and insurance sectors.
The starting point for functional complaints processing is the need to protect consumers. Good complaints' processing also provides feedback to the company and affects consumer confidence for financial market players. This in turn contributes to stability and efficiency in the financial system.
FI's guidelines for complaints processing and consumer information are found in both the general guidelines and in the regulations. FI reviews how companies handle these issues but does not resolve disputes between individual consumers and companies. The responsibility for this rests with the justice administrators – the courts and the National Board for Consumer Complaints.
The study showed that companies with few employees performed more poorly than large companies in following prevailing regulations for processing complaints. Smaller companies are found primarily among fund managers and insurance companies, as well as insurance brokers. Smaller companies do not see the need for well-conceived routines for processing complaints and informing consumers. In FI's view, however, consumers must have the same right to protection, regardless of whether they deal with a small or a large company.
One of five companies in the insurance sector (insurance companies and insurance brokers) and one of ten companies in fund management totally lack policies for complaint processing. Companies in the insurance and fund management sector are also deficient with respect to instructions for complaint processing, with 10 to 15 percent lacking such instructions.
When companies establish routines for processing complaints, it is FI's view that the risk of conflicts of interest must be considered. The person processing a complaint must not be the same person who sold the product or service to the customer. In the fund management and insurance sectors, this was the case in 25 percent of the companies, while the corresponding figure among banking and securities companies was 4 to 6 percent.
It is also FI's opinion that financial companies should inform consumers who or what department in the company is responsible for handling complaints. More than 40 percent of the companies in the insurance sector and 20 percent in the fund management sector did not provide information to FI regarding the party responsible for complaints. The reason cited was that it was not relevant for operations.
FI also concludes that there are companies in the fund management and securities sectors that do not provide such information to consumers as they are obligated to do according to FI's regulations. FI will therefore conduct an extra review of these companies.
