10.2 Following Firm Complaints Procedures as a Representative
Key Takeaways
- Representatives are bound by section 2 fairness and honesty and by the FSP’s approved complaints management framework — you do not invent, ignore or short-circuit the firm’s procedures.
- Log and escalate complaints promptly; never bury, delete or reclassify a complaint as a ‘query’ to avoid reportable status when dissatisfaction is real.
- Do not retaliate against complainants (threats, service withdrawal as punishment, harassment, or pressure to withdraw a complaint).
- On rejection or incomplete resolution, ensure the client is directed to internal escalation and, where appropriate, to the FAIS Ombud with contact details and time-limit themes — do not obstruct Ombud access.
- Cooperate fully with investigations: preserve records, give accurate statements, and never coach clients to understate facts or destroy evidence.
10.2 Following Firm Complaints Procedures as a Representative
Quick Answer: As a representative you must follow the FSP’s complaints management framework and procedures. You may not ignore, bury or rebadge complaints, retaliate against complainants, or obstruct escalation to internal review or the FAIS Ombud. Log dissatisfaction promptly, escalate per policy, preserve records, cooperate with investigations, and communicate in plain language with fairness consistent with GCOC section 2 and Part XI.
Section 10.1 explained the statutory framework the FSP must build. This section is the representative skill layer: what you do on Monday morning when a client is angry on the phone, in the WhatsApp chat, or at the desk.
Why the rep is the critical control point
Most complaints start with a person the client already knows — you. If you:
- treat the matter as “just venting” and never log it;
- promise a fix you never record;
- pressure the client to “leave it with me” while you hope they forget; or
- attack the client for “being difficult,”
you create personal honesty and integrity risk, firm Part XI breaches, possible Ombud findings, and a path toward debarment themes (later chapter).
The Code places the framework duty on the provider excluding a representative, but section 17 expressly requires processes for complaints relating to representatives, and section 2 binds every provider including representatives. Your job is to operate the framework, not invent a private one or sabotage the firm’s.
Know your firm’s map before the crisis
Before you need it, you should know:
| Item | Why it matters |
|---|---|
| Where and how clients may lodge complaints | Direct clients accurately; do not send them to a dead email |
| Who owns complaints (desk, compliance, KI, dedicated functionary) | Correct first escalation path |
| Expected timeframes and when extensions apply | Manage client expectations honestly |
| What to record on first contact | Reportable-complaint data quality |
| Internal escalation path if the client is still unhappy | s 17(5) process |
| Ombud contact details the firm must disclose | s 18 and rejection letters |
| Service supplier / product supplier referral rules | When the issue is partly insurer/administrator-side |
If your firm’s procedures are unclear, ask the key individual / compliance function — do not guess under pressure and invent unofficial “side deals.”
Skill 1 — Recognise a complaint when you hear one
Apply section 16: is this dissatisfaction about a product or service that alleges breach, harm/prejudice/distress/substantial inconvenience from maladministration or negligence, or unfair treatment?
| Client words | Likely treatment |
|---|---|
| “Please send me another statement; I lost mine.” | Often a query — process the request |
| “I’ve asked three times and still have no statement; this is unacceptable.” | Complaint themes (service / unfair treatment) — log |
| “You never told me about the early termination charge.” | Complaint (information / advice / unfair treatment) — log |
| “I’m cancelling because I found a cheaper product elsewhere, no issues with you.” | Termination request (s 20) — not automatically a complaint, but stay alert |
| “If you don’t reverse this debit I’ll report you to the Ombud.” | Treat as complaint; do not retaliate |
When in doubt, log and escalate per procedure. Under-recording to “protect stats” is a conduct failure, not clever management.
Skill 2 — Log promptly; never bury
Do:
- Capture the complainant’s details, contact method, product, and subject matter as soon as reasonably possible.
- Record what the client wants (refund, correction, apology, investigation).
- Keep copies of emails, call notes, screenshots of chats if that is a firm channel, and related advice records.
- Hand the matter into the firm’s complaints channel the same day when possible — do not wait for month-end.
- If you resolve a simple issue immediately to the client’s satisfaction, still follow firm rules on whether a light log is required for trend spotting.
Do not:
- Delete emails or “lose” notes because the complaint is about you.
- Relabel a clear complaint as a “query” solely to avoid reportable status when it will not be fixed in ordinary processes within five business days.
- Ask the client to put everything only in a lawyer’s letter before you will listen — that can be an unreasonable barrier (s 17(1)).
- Charge the client for lodging a complaint (s 17(8)(b) — no charge).
Exam phrasing that scores: “Representatives must ensure complaints are recorded and routed through the FSP’s internal complaint resolution system fairly and timeously; ignoring or burying complaints breaches the Code and fit-and-proper honesty themes.”
Skill 3 — Follow the process; do not freelance outcomes
You may be the first handler for simple service fixes. You are not free to:
- promise large compensation without authority;
- admit legal liability in writing without following firm protocol;
- offer “secret” goodwill discounts off-system to silence a client while hiding the matter from the KI;
- settle by moving the client to a worse product “as a favour.”
When a complaint is upheld and the firm commits to compensation, goodwill or other action, those commitments must be implemented without undue delay (s 17(6)(a)). Your role is to help execute authorised outcomes, not to invent them for production convenience.
If the complaint is about your own advice, expect the file to go to someone impartial with training and without a conflict (s 17(3)(b)). Cooperate; do not lobby the decision-maker with threats or gifts.
Skill 4 — No retaliation
Retaliation is a classic exam and real-world integrity failure. Examples:
| Retaliatory conduct | Why it fails |
|---|---|
| Threatening to cancel cover or withhold documents because the client complained | Unfair treatment; possible section 2 and Part XI breach |
| Harassing calls demanding withdrawal of the complaint | Intimidation; honesty/integrity risk |
| Spreading confidential client details to “punish” them | Section 3(3) confidentiality + fairness |
| Blocking the client’s access to the complaints email or Ombud information | Unreasonable barrier; s 18 obstruction themes |
| Demanding the client sign a waiver of Ombud rights to get a refund | Part XIII waiver themes + unfairness — do not use waivers to gut protections |
Fair, firm commercial decisions (e.g. lawful termination under section 20 with proper process) are not the same as punishment. Timing and tone matter: ending a relationship the day after a good-faith complaint without orderly hand-over looks retaliatory even if you claim “strategy.”
Skill 5 — Communicate as Part XI requires
Even when compliance writes the final letter, your interim contact must stay professional:
- Plain language (s 17(8)(c)).
- Acknowledge receipt and explain next steps if you are the receiving channel.
- Keep the client updated on progress, delays (with revised timelines), and the decision once known.
- If the outcome is a rejection, ensure the client gets reasons and escalation information — including internal review and relevant ombud details and time limits (ss 17(6)(b), 18).
Never say: “The Ombud is a waste of time” or “You’ll never win.” That can impede access. You may explain that internal resolution is the usual first step without discouraging lawful Ombud use.
Skill 6 — Distinguish internal process from the FAIS Ombud (preview)
| Stage | Your message to the client |
|---|---|
| First | “Please let us resolve this through our internal complaints process; here is how it works and expected timelines.” |
| During | Progress updates; escalate internally if complex or if client remains dissatisfied |
| After rejection / failed resolution | “You may refer the matter to the FAIS Ombud; here are contact details and relevant time-limit information our firm is required to provide.” |
| If client goes to Ombud early | Do not obstruct; cooperate with firm/Ombud processes; still try to resolve without delaying access (s 18 themes) |
Chapter 13 covers Ombud jurisdiction, process and determinations in depth. For this QC, know the sequence and co-operation duty, not every Ombud rule.
Skill 7 — Cooperate with investigation and learning loops
When compliance, the KI or an impartial functionary investigates:
- Produce the record of advice, disclosures, call notes and emails promptly.
- Give a truthful account — do not “reconstruct” a needs analysis that never happened.
- Accept that complaints data may show your pattern (same product, same non-disclosure). That is how the firm meets s 17(7) analysis duties.
- If you made an error, participate in remediation; do not quietly move the same practice to another book of business.
Section 17 also requires the firm to manage complaints about representatives and service suppliers, including referral processes and keeping complainants informed. Help that machine work; do not trap complaints in your personal inbox.
Worked scenarios
Scenario A — Burying: A client emails you that your replacement advice omitted a material penalty. You delete the email and do nothing.
Correct analysis: Failure to log/route a complaint; honesty/integrity and Part XI risk; the firm cannot meet reportable-complaint duties if the rep hides the matter.
Scenario B — Immediate fix: Client complains the debit date was wrong; you correct it on the call, confirm in writing, and the client accepts. Firm policy requires a brief log for trends.
Correct response: Fix + log per policy. May fall outside reportable status if upheld immediately, but you still follow firm recording rules.
Scenario C — Retaliation: After a complaint, you threaten: “If you go to the Ombud I’ll make sure no broker ever helps you.”
Correct analysis: Retaliation and possible obstruction of Ombud access — serious fit-and-proper issue.
Scenario D — Rejection letter: Compliance rejects the complaint with reasons and Ombud details. The client phones you angry.
Correct response: Stay professional; do not invent a new secret settlement; restate the escalation rights; escalate internally if new material facts appear; never tell the client the Ombud “is not for people like you.”
Scenario E — Manager pressure: Sales manager says, “Don’t log complaints about our campaign; it will kill our bonus metrics.”
Correct response: Refuse to bury; log per procedure; escalate to KI/compliance. Following an unlawful instruction does not immunise you.
Link to other Task 4 duties
| Related duty | Link to complaints skill |
|---|---|
| Section 2 honesty/fairness | Tone and substance of complaint handling |
| Section 3 records | Evidence for investigation |
| Disclosure and advice rules | Many complaints allege failures here |
| Conflicts of interest | Do not let production interest decide your own complaint |
| Section 20 termination | Ending the relationship must still be orderly and non-retaliatory |
RE5 exam tips for representative conduct on complaints
- Follow the firm’s procedures is the first correct verb in most stems.
- Log promptly / do not bury / do not retaliate are high-frequency skill answers.
- Verbal complaints count — “only written lawyer letters” is wrong.
- No fee for complaining.
- Rejection → reasons + escalation including Ombud path.
- Internal process first; Ombud is independent second-line (preview).
- Personal production targets never justify hiding a complaint.
A client phones a representative and expresses clear dissatisfaction that material early-termination charges were never explained. What is the representative’s best first response under firm complaints procedures?
Which action best illustrates prohibited ‘burial’ of a complaint by a representative?
After a client lodges a complaint about a representative’s conduct, which representative response is unacceptable?
The FSP rejects a complaint in writing with reasons. The client asks the representative what to do next. What should the representative ensure the client understands?