In October 2017, the UK Financial Conduct Authority ("FCA") released its Complaints Data Analysis relating to the first half of 2017.6 The data showed that in total, 3.32 million complaints were received by firms during this period, an increase of 280,000 complaints compared with the second half of 2016. The total amount of redress paid to consumers as a result of the complaints was 1.99 billion, an increase of 90 million from 1.90 billion in the second half of 2016.
The report analysed the complaints based on a variety of metrics, including complaints by product groups, as shown in the table on page 6 of this newsletter.
Within the "Investments" product category, complaints relating to structured products constitute about 2% of the total complaints for this product category, representing 1,355 complaints out of a total of 65,643 complaints. When contrasted with "Endowments" and "Individual Savings Account (where investment held)" products with each receiving 24% of the total number of complaints in the "Investment" product group, the complaints received for structured products is comparatively lower. This may be due in part to the relative sophistication of the investors who typically invest in structured products in the United Kingdom. It is also interesting to note that within the "Investment" product group, only 49% of the total complaints were upheld by the firm receiving the complaint; however, among these closed complaints, 93% were resolved within eight weeks (with 3% closing within three days).