Supervisory Information Circular – Complaints-handling and Regulatory Expectations (2024-10-23)

Summary

This is a Supervisory Information Circular issued by CIMA on 23 October 2024 addressing complaints-handling practices and the Authority's expectations for regulated entities. It does not create new rules but explains how existing requirements in the Rule and Statement of Guidance on Internal Controls (Sections 12.10-12.12) and the Rule on Corporate Governance (Section 5.7.5), both effective 14 October 2023, apply to complaints-handling frameworks.

CIMA's Expectations

The circular sets out CIMA's expectations that regulated entities embed robust complaints-handling policies and procedures. It emphasises director-level oversight of complaints and independent investigation by sufficiently senior staff.

• Clear channels: Clear channels for complainants to raise concerns.
• Defined timelines: Defined timelines for acknowledgment, investigation and final decision.
• Tracking: Tracking of complaints across all channels.
• Reporting: Periodic reporting to the Board and Senior Management on complaints trends and remediation.

Best Practice Recommendations

The circular also encourages, as best practice rather than strict requirement, several additional measures.

• Accessible contact details: Publishing accessible complaint contact details.
• Process information: Providing complainants with process information and updates.
• Redress mechanisms: Offering redress mechanisms for affected customers, including those who did not complain, where issues are systemic.
• Tone at the top: Fostering a 'tone at the top' that avoids penalising complainants.

CIMA states it will assess compliance with the underlying Rules and SOG during onsite inspections and complaint investigations.

Key obligations

• Each director of the governing body must ensure complaints submitted to the RE are addressed appropriately and in a timely manner, with concerns documented and corrective action evidenced (Corporate Governance Rule s.5.7.5).
• REs must maintain adequate procedures for receiving, recording, investigating, monitoring, and resolving complaints (Internal Controls Rule and SOG s.12.11).
• REs must ensure complaints are handled fairly, consistently, and in a timely manner, and take necessary remedial action where control deficiencies are identified through upheld complaints (s.12.11).
• REs must establish procedures to track complaints received via multiple channels and log/monitor them until resolution (s.12.11).
• REs must ensure adequate formal complaint-handling training is provided to relevant staff upon joining and on an ongoing basis (s.12.11).
• Complaints must be investigated independently by staff of sufficient seniority, knowledge, skill and experience (s.12.12 and s.8.9).
• The Governing Body and Senior Management must periodically receive reports summarising key control issues and complaints, including nature, volume, frequency, trends, remediation, lessons learned and disciplinary actions taken (s.12.12).
• Where required, REs must make appropriate simultaneous filings with other relevant regulatory bodies regarding complaints matters.

Applies to

Regulated Entities (REs)