What does the FCA require from firms regarding complaints?

The FCA requires firms to establish a detailed complaints handling process to ensure that complaints are addressed fairly, promptly, and effectively. This requirement helps maintain trust and transparency between financial institutions and their clients. A structured process allows firms to analyze complaints, identify patterns or systemic issues, and improve their services based on client feedback. By instituting such a process, firms can demonstrate their commitment to customer care and compliance with regulatory standards, which is essential for maintaining a robust financial market and protecting consumer rights.

The other options do not align with the FCA's expectations for firms. For instance, dismissing complaints quickly may lead to unresolved issues and client dissatisfaction. Not responding to complaints would be contrary to the regulatory framework aimed at protecting consumers. Similarly, while firms can seek external help when needed, it is not a requirement by the FCA to contract external auditors specifically for complaints resolution. The emphasis is on having an internal, well-defined complaints handling mechanism.