The regulator noted both the speed and quality of decision-making has improved over the last twelve months, with the number of complaints taking over eight weeks to resolve falling from 33,000 in September 2005 to 7,000 a year later.
Vernon Everitt, retail themes director at the FSA, said: "It is encouraging that firms have improved the speed and quality of how they handle complaints. News of a potential shortfall is a major worry for consumers and firms owe it to themselves to deal with their complaints quickly and fairly. We are keeping a close eye on this to make sure that firms continue to do just that.”
However, it also said it had been reviewing the processes of 52 firms since July 2005 and had concerns with 22 of them, although 14 had begun remedial action in these problem areas.
The FSA also urged firms to look to the future and help spot potential consumer detriment before policies mature, helping them to set up ways to cover the shortfall.
Simon Chalk, mortgage planner at Mortgage Portfolio Services, believed it was a good thing that companies were getting their acts together.
“Most brokers don’t have permission to deal with endowments as they were treated pre-regulation as investments so it’s good thing that providers are giving out information to help customers be aware of potential shortfalls. However, as brokers, it’s our job to help people deal with these shortfalls and hopefully, in a few years time, we can put this chapter behind us.”
