Miscellaneous Arrangements for the investigation of complaints
Part 6 of the FSA 2012 governs the investigation of complaints against the FCA, the PRA and the Bank ("the regulators") by the Financial Regulators Complaints Commissioner.
	Section 84 of the FSA 2012 requires the regulators to put in place a scheme for the prompt, independent investigation of complaints made against them in respect of their relevant functions (as defined in section 85), for example complaints about maladministration.
	Under section 84(1)(b), the regulators must appoint an independent person as the "investigator" (i.e. the Complaints Commissioner). This appointment requires the approval of HM Treasury under section 84(4), and it must be made on terms and conditions reasonably designed to ensure the Complaints Commissioner’s independence from the regulators, and to ensure that complaints will be investigated under the scheme without favouring the regulators (section 84(5)).
	The Act amends section 84 to provide that HM Treasury, rather than the regulators, must appoint the Complaints Commissioner on terms and conditions reasonably designed by HM Treasury to ensure independence from the regulators, and to ensure that complaints will be investigated under the scheme without favouring the regulators.
	Section 86 of the FSA 2012 requires the regulators to consult publicly on a draft of the proposed scheme, and any alteration to or replacement of the complaints scheme, to consider and report on representations received, and to publish up-to-date details of the complaints scheme. The current complaints scheme is available on the Complaints Commissioner’s website .
	Section 87 of the FSA 2012 deals with the operation of the complaints scheme. Under subsection (1) a regulator may decide not to investigate a complaint in accordance with the scheme if it reasonably considers that it would be more appropriately dealt with in another way. A regulator may make an initial investigation of a complaint, and the Scheme must provide for the possibility of referral of any complaint it is investigating to the Complaints Commissioner (subsection (2)(a)). The regulator must also notify the Complaints Commissioner of complaints it has decided not to investigate, and the Complaints Commissioner may choose to investigate such a complaint (subsections (3) and (4)).
	Where the Complaints Commissioner has conducted an investigation, it must report on it to the regulator and the complainant, and the investigator can recommend that the regulator makes a compensatory payment to the complainant or remedies the matter, or both (subsection (5)). The Complaints Commissioner can publish all or part of the report if the investigator thinks that it ought to be brought to the attention of the public (subsection (2)(b)(iii)) and, if a report is critical of the regulator, the regulator must inform the investigator and the complainant of the steps it proposes to take in response (subsection (6)) and the investigator may require the regulator to publish all or part of that response (subsection (7)).
	Two further subsections were inserted in section 87 by section 20 of the Small Business, Enterprise and Employment Act 2015, requiring the complaints scheme to provide for the Complaints Commissioner to make an annual report. Under subsection (9A), the annual report is prepared and published by the Complaints Commissioner, who must send a copy of the report to each regulator and HM Treasury. If the report makes recommendations or criticisms about the regulators' handling of complaints, the regulators must produce and publish a response. The regulators must send a copy of their response to both the Complaints Commissioner and HM Treasury. HM Treasury must lay the annual report and any responses before Parliament.
	The Act inserts a new subsection (9A)(ba) to require the regulators, in their response to the Complaints Commissioner’s annual report, to provide a summary of the cases in which they decided not to follow "relevant recommendations" of the Complaints Commissioner, and a summary of the reasons for those decisions. "Relevant recommendations" is defined in a new subsection (9C) as recommendations to the regulator contained in the Complaints Commissioner’s annual report, or in final reports given by the Complaints Commissioner in relation to individual complaints during the period to which the annual report relates.
	Subsection (9B) provides a power for the complaints scheme to include provision about the period to which each annual report must relate, and about the contents of the report. It also requires the complaints scheme to provide for the report to include specific contents.
	The Act inserts a new subsection (9B)(f), which enables HM Treasury to direct the Complaints Commissioner to include other matters (as may be specified in the direction) in its annual report.