Complaints - Your Capital

Complaints management policy and procedure

1. Purpose and scope

Complaints management is an integral part of Treating Customers Fairly (TCF), which forms part of the market conduct framework being implemented by the Financial Sector Conduct Authority (the Authority), being the market conduct regulator of the financial services industry in South Africa.

The TCF consumer protection framework (TCF framework) is applicable to all South African regulated financial institutions, including, but not limited to Authorised Financial Services Providers (FSPs), licensed under the Financial Advisory and Intermediary Services Act 37 of 2002 (the FAIS Act), retirement funds, and their administrators, licensed under the Pension Funds Act 24 of 1956 (the PFA), Insurers licensed under the Insurance Act 18 of 2017 (Insurance Act), and managers of collective investment schemes, licensed under the Collective Investment Schemes Control Act 45 of 2002 (the CISCA), all through the Financial Sector Regulation Act 9 of 2017 (the FSRA).

TCF Outcome 6 requires that clients should not face unreasonable post-sale barriers imposed by the Company, to change financial products, switch product suppliers, switch financial services providers, submit a claim, or make a complaint. The FSRA provides for complaints to be submitted to the relevant ombud, about the actions, or practices, of a specific financial institution, for the financial products and/or financial services offered by it. The draft Conduct of Financial Institutions Bill (COFI) provides for complaints, in detail, relating to the TCF framework. This inclusion in COFI follows the Authority’s Complaints Management Discussion Document, which provided for a consistent, and comprehensive, regulatory framework to support delivery of the complaints aspect of Outcome 6, due to inconsistency across financial services laws.

The Company strives to apply the highest standards of ethical behaviour during the conduct of its business activities, and this behaviour is expected of all its employees and associates. The Company always aims to act in the best interest of clients, and in this regard, the Policy is intended to provide for the fair treatment of clients (including potential clients).

The Company is committed to the TCF outcomes, which are the results, or consequences, which clients should experience when fair business practice is consistently applied, and is embedding this culture into the business, by ensuring that:

1.1. Outcome 1: Clients can be confident they are dealing with a company where TCF is central to the corporate culture.

1.2. Outcome 2: Financial products and services, marketed and sold, are designed to meet the needs of identified client groups, and are targeted accordingly.

1.3. Outcome 3: Clients are provided with clear information, and are kept appropriately informed, before, during, and after, the point of sale.

1.4. Outcome 4: Where financial advice is given, it is suitable, and takes account of client circumstances.

1.5. Outcome 5: Financial products perform as the Company has led clients to expect, and service is of an acceptable standard, and is as clients have been led to expect.

1.6. Outcome 6: Clients do not face unreasonable post-sale barriers imposed by the Company, to change financial products, switch product suppliers, switch financial services providers, submit a claim, or make a complaint.

The Policy formalises the complaints management aspect of the TCF standards applied by the Company, in accordance with the TCF framework, to enhance the business focus on clients. The Company applies the TCF principles across its strategies, people, policies, processes, and systems, which are related to product development, marketing, sales, providing advice, communications, service, administration, and complaints management. The Company tries to ensure fair business practice, to consistently deliver fair outcomes for clients.

This policy provides controls, to reduce the probability of the below risks occurring:

Clients may become dissatisfied and alienated, due to our failure to treat them fairly, and in accordance with what we have led those clients to believe.
The reputation of the Company may be negatively impacted, due to non-compliance with the TCF principles.
Failure to comply with the TCF principles may result in closer supervision by the Authority.
Regulatory sanctions may be imposed by the Authority, due to failure to deliver on any of the TCF outcomes.

This Policy considers the complaints management aspect of the market conduct framework being implemented by the Authority. It also considers the principles embodied by the Companies Act 71 of 2008 and the King Code of Governance for South Africa 2009 (King IV).

This policy is applicable to all employees of the Company and its subsidiaries, and all relationships with third parties. This policy should be read in conjunction with the Company’s treating clients fairly policy.

2. Definitions

2.1. Company means Your Capital (Pty) Ltd, being a South African registered financial institution, in terms of the FSRA.

2.2. Authority, or FSCA, means the Financial Sector Conduct Authority, being the market conduct regulator.

2.3. FSRA means the Financial Sector Regulation Act 9 of 2017.

2.4. COFI means the draft Conduct of Financial Institutions Bill, which will provide for the establishment of a consolidated, comprehensive, and consistent, regulatory framework for the conduct of financial institutions.

2.5. Complainant means a person who submits a complaint, including a:

financial client, financial client’s successor in title, or potential financial client (as may be applicable)
beneficiary, or the beneficiary’s successor in title
person whose life is insured under an insurance policy
person that pays any contribution, or money, in respect of a financial product, or financial service
member, member spouse, or potential member (as may be applicable), of a pension fund, insurance group scheme, or other type of member-based product, or scheme

2.6. Complaint means an expression of dissatisfaction, by a person, to a financial institution, or to the financial institution’s service provider, about a financial product, or financial service, provided, or offered, by the financial institution, which indicates, or alleges, regardless of whether the expression of dissatisfaction is submitted together with, or in relation to, a query by a financial client, expressing that:

the financial institution, or its service provider, has contravened, or failed to comply with, an agreement, a law, a rule, or a code of conduct, which is binding on the financial institution, or to which it subscribes
the financial institution’s, or its service provider’s, mal-administration, or wilful, or negligent, action, or failure to act, has caused the person harm, prejudice, distress, or substantial inconvenience
the financial institution, or its service provider, has treated the person unfairly.

2.7. Complaints management means managing the lifecycle of a complaint. It starts with an easy process for the client to lodge complaints and the related communication. Complaints management includes the way:

complaints are handled, recorded, and quality controlled;
people involved in complaints management processes are managed and trained;
decisions are made;
clients’ trust is restored;
reports are compiled and analysed;
the Company learns from the feedback gained from complaints, and takes appropriate corrective and proactive action.

2.8. Complaints management head means the person responsible for implementing, and maintaining, complaints management, in accordance with the TCF standards, within the Company.

2.9. Complaints handling means the process of attending to complaints and complainants.

2.10. Reportable complaint means a complaint, other than a complaint that has been:

upheld immediately by the person who initially received the complaint
upheld within the Company’s normal processes for handling client complaints about the type of agreement, financial product, or financial service, complained about, as long as the process does not take more than 5 business days to complete, from the date the complaint is received
submitted to, or brought to the attention of, the Company, in a way that the Company does not have a reasonable opportunity to record the details of the complaint, which details are required for reportable complaints

2.11. Upheld complaint means a complaint that has been finalised in a way where the complainant has explicitly accepted that the complaint is fully resolved, or that it is reasonable for the Company to assume that the complainant has accepted that the complaint is fully resolved. A complaint should only be regarded as upheld once all undertakings made by the Company, to resolve the complaint, have been met.

2.12. Rejected complaint means that the complaint is not an upheld complaint, and the Company regards the complaint as finalised, after advising the complainant that it does not intend to take any further action to resolve the complaint. This may happen either where the Company rejects a complaint without offering to take steps to resolve it, because the Company regards the complaint as being unjustified, or invalid, or where the complainant does not accept, or respond to, the Company’s proposals to resolve the complaint, and the Company then advises the complainant that it does not intend to take any further action to attempt to resolve the complaint.

2.13. Root cause analysis means the process by which the origin, and cause, of a trend in complaints, or an isolated complaint, is determined, to identify what needs to be improved, to prevent recurrences of poor outcomes for clients and errors.

2.14. Compensation payment means a payment, other than a goodwill payment, by the Company, to a complainant, to compensate the complainant for a proven, or estimated, financial loss incurred, due to the Company’s contravention, non-compliance, action, failure to act, or unfair treatment, forming the basis of the complaint, where the Company accepts liability for having caused the financial loss concerned.

A compensation payment:

- excludes payments that are contractually due to the complainant, in terms of the financial product, or financial service
- excludes refunds of amounts paid by, or on behalf of, the complainant to the Company, where the payments were not contractually due
- includes interest on the late payment of the above-mentioned excluded payments, or refunds.

2.15. Goodwill payment means a payment made by the Company to a complainant, as an expression of goodwill, aimed at resolving a complaint, but where the Company does not accept liability for any financial loss to the complainant, due to the matter complained about.

2.16. Query means a request to the Company, by, or on behalf of, a client, for information about the Company’s financial products, financial services, or related processes, without any expression of dissatisfaction.

3. Roles and responsibilities

3.1. Board of directors (board) maintains overall responsibility for the Policy, which may be delegated to the relevant stakeholders for implementation.

3.2. Governance structures that are appropriate to the small size of the Company, must be in place, to ensure compliance with this Policy. When appropriate to the size, nature, and complexity, of the Company, the Audit Committee must have an overview of the general and specific compliance requirements.

3.3. Internal audit, in its capacity as the third line of defence, provide assurance over this Policy, by providing an independent assessment of the adequacy and effectiveness of the overall risk management framework and risk governance structures, through the annual risk-based audit plan. Internal audit has the authority to independently determine the scope and extent of work to be performed, as mandated by the Audit Committee. Due to the small size of the Company, it has not established an internal audit function. However, the risk management structure will be re-assessed periodically, if the size, nature, and/or complexity, of the Company changes. The governance structure is suitable for the Company, based on the nature, and small size of the Company.

3.4. Compliance officers must monitor compliance with this Policy, and report non-compliance to the board, and the governance structures. They must provide guidance and training to employees, to assist them in understanding the Policy and their obligations thereto.

3.5. Employees must ensure that they understand this Policy, and always comply with it. They must continuously assess their own environment, to ensure the fair treatment of clients, and take the appropriate course of action, in terms of the Policy. Employees must be cognisant of the consequences of non-compliance with the Policy.

4. Outcome 6: Post-sale barriers to make a complaint

4.1. The Company aims to ensure that its clients do not face unreasonable post-sale barriers to make a complaint.

4.2. Procedures implemented to achieve the complaints management aspect of Outcome 6:

Clients are informed about how to make complaints.
The Company aims to give clients efficient, and effective, complaints management, which resolves their complaints about the financial products and/or financial services, offered by the Company, in a fair and timely way.
The Company has implemented systems to monitor complaints, and has processes in place to pro-actively identify, and manage, conduct risks, effect improved client outcomes, and prevent recurrences of poor outcomes and errors.
The complaints management policy and procedure is easy for clients to find on the website, and all material reflects where clients can find the complaints management policy and procedure.

5. Understanding a complaint

5.1. A complaint does not need to be in writing, to be classified as a complaint. It may be made verbally.

5.2. Even though certain financial services legislation specifies that complaints must be in writing, verbal complaints may, and should, be accepted. In terms of the TCF principles, it should be made easy for clients to complain. The TCF framework is overarching across financial services legislation, and once promulgated, the COFI will align all financial services legislation with the TCF principles.

5.3. If a complaint is submitted together with a query, it must be treated as a complaint, not as a query.

5.4. A complaint is a complaint, regardless whether the complainant is right, or fair.

5.5. Complaints from all complainants, as defined in this policy, are valid, and are treated as complaints.

5.6. Clients generally complain when they, or someone they are acting on behalf of, has suffered inconvenience, distress, prejudice, or financial loss, etc.

6. Complaints Management

6.1. The Company’s complaints management aims to:

have good quality standards in complaints handling
have ongoing quality assurance
manage the complaints handling
provide meaningful management information
make continuous improvement, based on complaints feedback
openly engage with ombuds
preserve clients’ trust, regarding complaints.

6.2. Quality standards in complaints handling

Accessibility and visibility

To make it easy for clients to lodge complaints, we make the procedures visible to clients on all key documents provided to clients, and on the Company’s website.
As far as possible, we provide a single contact point for submitting complaints.
We ensure that the key documents show the relevant complaints contact details.
We manage operations, and employees, to ensure that we are accessible during office hours, via the complaints contact details provided to clients.
Employees are trained, accordingly.

Employee responsiveness

Employees who are directly involved with complaints handling must demonstrate an empathetic attitude towards complainants.
Employees receive training, and are monitored on the way they attend to each complaint, with the necessary urgency, and due empathy, and care, for the complainant’s situation.

Employee competence and knowledge

To ensure efficient complaints handling, the responsibility for handling specific complaints must be delegated to employees who are suitably trained, and who have appropriate experience, knowledge, and skill, in complaints handling, in the specific complaint’s subject matter, in the TCF principles, and in relevant regulatory provisions.
Employees who are directly involved in complaints handling receive training, from time to time, to keep their financial product and process knowledge updated.
Employees that have a full-time focus on complaints handling, are assessed, and performance-managed, to ensure competence in their complaints handling abilities.

Quality of investigation

Complaints may require investigation.
If investigation is required, we take reasonable steps to gather, and investigate, the relevant information, and circumstances, considering the TCF principles.
We keep notes, to show the extent of the investigation, which can be provided as evidence of fairness to complainants.
Our quality assurance processes monitor the quality of our investigations, to ensure that we are not biased, in our favour, when investigating a complaint.

Resolution speed

Our quality standards recognise that speed is significantly important in resolving complaints.
We aim to resolve all complaints in the shortest reasonable time possible, ideally within 5 business days after receiving the complaint, or less, where it is in our power to do so.
Turnaround times will be monitored, to ensure resolution within regulatory deadlines.

Consistent and objective decision-making

Employees are trained, to ensure that two complainants with the same concerns and circumstances, receive the same outcome, even if one complainant shouts and threatens, but the other complainant does not.
Records of executive decisions for escalated complaints are maintained, to keep record of precedence, and ensure consistency.
The Company’s structure ensures that employees who are responsible for complaints-related decision-making, are not conflicted, and are empowered to make objective decisions, or recommendations.
Employees involved in escalated complaints, are provided with additional training about objective decision-making.

Independent review

If a complainant wants to escalate, or appeal against, a decision already made through the normal complaints handling process, we will refer the complaint to the board, for an impartial reconsideration of the complaint, within strict turnaround times, before escalation to the relevant ombud.

Compensation and goodwill payments

If a complainant suffers financial distress, due to our internal control failures, we will consider an appropriate compensation payment, considering factors, such as joint liability.
If a complainant suffers any other form of distress, due to our internal control failures, we will consider reconciliatory redress, in the form of a goodwill payment, depending on the circumstances.

Confidentiality of complainant information

As far as possible, we maintain the confidentiality of our complainants’ personal information, and comply with the relevant legislation.

Accurate record keeping

We must record complaints accurately, efficiently, and securely.
Complaints records must be correctly categorised, according to the nature of the complaint, and the TCF outcomes.
Complaints records must include at least: date of receipt; date of resolution; details of the complainant; complaint subject matter; progress and status of complaint; copies of evidence, correspondence, and decisions.
Monitoring, quality assurance, training, and performance management, is provided.
The Company has created, and will maintain, a complaints register, which will be used for analysis, record keeping, and reporting.

Communication

We communicate clearly with complainants about how they can lodge a complaint, and how their complaint will be handled.
When complaints are received, and during the investigation of a complaint, where applicable, we communicate in a clear and timely way.
We aim to communicate appropriately after the complaint has been resolved, to monitor complainant satisfaction levels, to ensure that we are treating clients fairly.

6.3. Quality assurance

We aim to ensure that there is an appropriate level of quality assurance in place, to monitor the way complainants are treated during the complaints handling process, the way internal processes are adhered to, and to identify internal controls requiring improvement.
Management information about the quality assurance of the complaints handling process, will be provided.

6.4. Managing the complaints handling

The head of the Company has formally appointed Brink Vermaak as the complaints management head, who is the person responsible for implementing, and maintaining, complaints management, in accordance with the TCF standards, within the Company.
The complaints management head must ensure that the daily volumes of complaints are attended to in a timely way, and that no complaints are outstanding for unacceptable time periods. This requires appropriate recruitment, training, testing, incentivisation, and performance management, of employees with appropriate experience, knowledge, and skill, in complaints handling.
The complaints management head must ensure that the standards provided for in this policy, are adhered to.
The complaints management head must ensure that incentives in place for employees who handle complaints, are appropriately aligned to the TCF principles, and which should not reward behaviour that runs contrary to any of the TCF outcomes.
The complaints management head is accountable for resolving complaints, except where the law requires otherwise. Contentious matters, requiring executive decision-making, must be escalated to the board.
The complaints management head is responsible for specifying, reviewing, and analysing, complaints handling related reports, and management information.
The complaints management head is responsible for creating, and maintaining, the complaints register.
The complaints management head must ensure that all reportable complaints (which includes complaints that take longer than 5 business days to resolve), are reported to the relevant Authority, in the prescribed way.

6.5. Management information

Proper complaints records must be kept, for useful management information reports to be created and analysed.
Useful complaints management information reports will be created, and implemented, as may become necessary.
Reports are used to analyse complaints in relation to other data.
The nature, and quality, of management information is important to monitor, and ensure that the Company adheres to the TCF outcomes.

Complaints should be analysed to:

identify root causes common to categories of complaints
identify where root causes are likely to affect other financial products, or processes
identify failed internal controls
identify poor performance, lack of skills, or misconduct
track adherence to the TCF outcomes
track the risks to delivering the TCF outcomes
demonstrate the benefits of effective complaints management, by learning from complaints analysis, to make continuous improvement for clients, and the Company.

Reports should be scrutinised and analysed, to identify trends in internal control failures, and the potential for systemic issues. Specific emphasis must be placed on root cause analysis.
Reports should be reviewed regularly, including to look for incidents where complainants may be highlighting a systemic issue that is affecting a wider group of clients.
The volume of complaints must be tracked, and known, as well as progress status, at any time point.
Complaint numbers about the following aspects, should be tracked, and compared over time periods: aging; resolved in favour of the complainant; rejected; escalated; referred to ombuds; resulting in litigation; resulting in compensation payments and/or goodwill payments.
Reports required by the Authorities, must be compiled, and submitted, in the prescribed way, and within the prescribed deadlines.
Reports must be compiled, and submitted to the board, as requested, from time to time.
The Company has created, and will maintain, a complaints register, which will be used for analysis, record keeping, and reporting.

6.6. Continuous improvement

The Company aims to learn from complaints received, and to continuously improve.
The complaints management head is responsible for providing meaningful reports to the board, and to affected areas of the Company, based on the analysis of complaints trends and root causes.
The complaints management head must escalate to the board, in instances where affected areas of the Company have failed to rectify underlying issues, for whatever reason.
Appropriate management information must be maintained, about the number, and nature, of issues taken up with affected areas of the Company, to rectify underlying issues.
Root causes that are not rectified within a specified period, must be reported to the board, because failing to rectify the root cause may be unfair to clients.

6.7. Engaging with ombuds

We clearly, and transparently, advice clients and complainants about the availability, and provide contact details, of the relevant ombuds, including at the point of sale, relevant periodic communications, when a complaint is received, and when a complaint is rejected.
We apply the principle that complaints will only be dealt with by the relevant ombud after our internal remedies to deal with complaints have been exhausted.
The Company is committed to communicating openly, and honestly, and cooperating with, the relevant ombuds, to resolve complaints.
The Company must maintain specific records, and perform specific analyses, of complaints referred to the relevant ombud, and the outcomes of the complaints.
Complaints received via an ombud are handled according to the requirements specified by the relevant ombud.

6.8. Preserving clients’ trust

The board must take appropriate action, it is found that complaints point to a broader issue, or to a wider population of affected clients, even if they do not complain.
Post-complaint follow-up communication should be performed, to monitor client satisfaction levels.

7. Consequences of non-compliance with the policy

7.1. All employees are obliged to comply with the Policy, and it is a condition of employment. Non-compliance is a breach of his/her employment contract, and is an action of misconduct, so employees may be subject to disciplinary action, which may lead to dismissal. The human resources employees will be approached with regards to the disciplinary action process, to ensure that the process is followed in the prescribed way. In respect of non-compliance, reports made by the compliance officers, internal audit, external audit, and the Authorities, will be considered, for appropriate action to be taken.

8. Policy review

8.1. The policy will be review annually, updated, if necessary, and the latest version will be adopted, and approved by the board.

APPENDIX A: CLIENT COMPLAINT LODGING PROCESS

Are you unhappy with our service, or financial products?

If YES, please tell us. We appreciate your feedback, we take your complaints seriously, and commit to attend to them as quickly as possible.

What to do if you are unhappy with our service, or financial products

Please let us know, as soon as possible, in one of the following ways:

Email: [email protected]

Call during office hours: +27 82 561 0132

Visit: Midlands Office Park West, Mount Quray Road, Midstream, 1683

Post: Midlands Office Park West, Mount Quray Road, Midstream, 1683

What to include in your complaint

To assist us to address your complaint as quickly as possible, please include all the relevant information. Please include:

Your full name, identity number, and contact details
Your account number, client number, member number, or policy number
Name of financial product, of fund
Details about your complaint
Who you have dealt with, and when you dealt with them
Any losses you have suffered, due to this issue
What you would like us to do, to make things right for you
Your permission for us to use all the information you have given us, to resolve your complaint

What we will do to assist you

We will attend to your complaint as quickly, and as fairly, as possible.
If we find that it is not a simple issue, we will keep you updated while we work on it.
Within 1 business day of receiving your complaint, we will acknowledge receipt, and let you know who will be dealing with it.
If we cannot resolve your complaint immediately, we will do our best to resolve it within 5 business days, and provide you with written feedback.
Some complaints may be complex, and involve many issues. In these cases, we will not be able to resolve the matter within 5 business days, but we will resolve it within the relevant legislative timeframe (which is generally about 30 business days). We will keep you updated regularly, and we will let you know exactly who is taking ownership of your complaint, and who will follow it through to completion.
After we do everything we can, to properly investigate your complaint, and fairly assess the issue, we will send you a final report on the matter.

What to do if you are unhappy with the way we dealt with your complaint

If you feel we have been unreasonable, or unfair, in any way, you may escalate your concern.

You may ask the person who was handling your complaint to get a board member to review your complaint, before you decide to take the matter up with the relevant ombud (or adjudicator, or Authority, as the case may be).

After escalation, if you are still unhappy with the way your complaint has been handled, despite our best efforts, you may take the matter up with the relevant ombud, which are independent bodies that have been set up to sort out complaints between clients and financial institutions that have not been able to resolve complaints effectively between themselves.

For complaints about financial advice and/or financial products, you should contact the financial services providers ombud:

Tel: +27 (0) 12 470 9080
Fax: +27 (0) 12 348 3447
Postal address: P. O. Box 74571, Lynnwood Ridge, 0040
Physical address: Sussex Office Park, Ground Floor, Block B, 473 Lynnwood Road, Cnr Lynnword Road & Sussex Avenue, Lynnwood, 0081
Email: [email protected]
Website: www.faisombud.co.za

For complaints about unit trusts (collective investment schemes), you should contact the Authority (Financial Sector Conduct Authority):

Tel: +27 (0) 12 428 8017
Postal address: P. O. Box 35655, Menlo Park, 0102
Physical address: Riverwalk Office Park, Block B, 41 Matroosberg Rd, Ashlea Gardens Ext 6, Menlo Park, Pretoria, 0081
Email: [email protected]
Website: www.fsca.co.za

For complaints about retirement funds, you should contact the Pension Fund Adjudicator:

Tel: +27 (0) 12 346 1738
Fax: +27 (0) 86 693 7472
Postal address: P. O. Box 580, Menlyn, 0063
Physical address: Riverwalk Office Park, Block A, 41 Matroosberg Rd, Ashlea Gardens Ext 6, Menlo Park, Pretoria, 0081
Email: [email protected]
Website: www.pfa.org.za

For complaints about long-term insurance policies, you should contact the long-term insurance ombud:

Tel: +27 (0) 21 657 5000
Fax: +27 (0) 21 674 0951
Postal address: Private Bag X45, Claremont, Cape Town, 7735
Physical address: 3rd floor, Sunclare Building, 21 Dreyer Street, Claremont, Cape Town, 7700
Email: [email protected]
Website: www.ombud.co.za

For complaints about short-term insurance policies, you should contact the short-term insurance ombud:

Tel: +27 (0) 11 726 8900
Fax: +27 (0) 11 726 5501
Postal address: P. O. Box 32334, Braamfontein, 2017
Physical address: 5th floor, Building D, Sunnyside Office Park, 32 Princess of Wales Terrace, Parktown
Email: [email protected]
Website: www.osti.co.za

APPENDIX B: COMPLAINT HANDLING PROCEDURE

The internal process of attending to complaints and complainants is detailed below.

Employees handling complaints must adhere to the quality standards in complaints handling, detailed in the policy.

Day 1

Receive the complaint

Acknowledge the complaint (maximum 2 business days after receiving the complaint)

In some cases, the turnaround time from time of receipt to time of acknowledgement is minutes. In other cases, the maximum turnaround time is 2 business days.
Acknowledgement must be made in writing, if the complaint is made in writing (e.g. post, email, website).
Use the template acknowledgement of complaint letter.

Log the complaint in the complaints register (or complaints management system)

Log the initial details of the complaint.
Logging of complaints is compulsory.
Logging of complaints includes adding to an existing complaint that has been escalated).

Delegate the complaint handling

Delegate the complaint handling to an employee who is suitably trained, and who has appropriate experience, knowledge, and skill, in complaints handling, in the specific complaint’s subject matter, in the TCF principles, and in relevant regulatory provisions.

Start the investigation (maximum 4 hours after acknowledging the complaint)

Make notes in the complaints register (or complaints management system), and ensure that all correspondence is tracked.

Day 3

Give 1st progress update (maximum 2 business days after starting the investigation), OR end the investigation

Make notes in the complaints register (or complaints management system), and ensure that all correspondence is tracked.

Day 5

Give 2nd progress update (maximum 2 business days after giving 1st progress update), OR end the investigation

Make notes in the complaints register (or complaints management system), and ensure that all correspondence is tracked.
Generally, we must give progress updates every 2 business days. However, this may vary, depending on the nature of the complaint, the source of the complaint, and the feedback commitments made to the complainant. It is important to stick to progress update dates agreed to with the complainant.

End the investigation (ideally within 5 business days after receiving the complaint, but by no later than relevant regulatory deadlines)

The turnaround time from starting the investigation to ending the investigation depends on the complexity of the issue, and the amount of time it takes to investigate the issue.

Provide final report to the complainant (maximum 4 hours after ending the investigation)

Whether a final report is verbal, or in writing, will depend on how the complaint was lodged, on the complexity of the complaint, and on any regulatory obligations.
Use the template response to complaint letter.

Finalising administration (maximum 4 hours after providing the final report)

Complaints information must be finalised in the complaints register (or complaints management system).

Reporting to Authority

All reportable complaints (which includes complaints that take longer than 5 business days to resolve), must be reported to the relevant Authority, in the prescribed way.

APPENDIX C: ROOT CAUSE ANALYSIS PROCEDURE

The Authority requires root cause analysis to be done on clusters of complaints. It does not expect root cause analysis to be done on every single complaint, although it does require the reason (nature) of every single complaint to be logged.

The Authority requires the Company to demonstrate what has been done to fix the root cause of the issue, and to demonstrate how the impact of that corrective action has been monitored.

Complaints analysis should identify root causes common to categories of complaints, and instances where the root causes are likely to affect other clients, financial products, or processes.
The complaints register (or complaints management system) must provide for complaints to be categorised, trends to be identified, and to perform root cause analysis.
Consolidating complaints is important, to perform meaningful root cause analyses.
We must determine the main reason(s) for complaints, to pro-actively identify trends, and take corrective action relating to a financial product, a process, a specific employee, and/or a type of complaint, or in relation to the complaints management process itself.
We must perform root cause analysis, to effectively address the root cause of complaints, and to take preventative steps to avoid the same type of complaints from recurring.
It is unacceptable to address complaints on a reactive case-by-case basis.
Gather the facts
Understand what happened
Determine the root cause, including allocating a category and sub-category
Determine the probability and impact of the root cause occurring
Determine corrective action, including responsible employees, and deadline dates
Report and follow-up on corrective action
Implement corrective action
Evaluate effectiveness of corrective action

Root cause category	Root cause sub-category
Human factors	Lack of knowledge, or skill
	Incorrect, or insufficient advice
	Lack of communication
	Lack of management involvement
	Proper legal advice not obtained
	Internal fraud
	External fraud
	Oversight
Rules/policies/procedures	Inadequate procedures/poor control within business
	Practice digresses from laid down procedures
	Not keeping timelines – late, or no, action
	Employees not properly reading/checking before actioning
	Client expectation not clarified in writing, or outside SLA
	Incorrect translation of rules into administration processes
Information management	Lacking training, or education
	Data extraction error, or manipulation