CISI UK Financial Regulation
CISI UKFR element

Complaints and Redress questions for the CISI UKFR exam

The DISP rules, the Financial Ombudsman Service and the Financial Services Compensation Scheme.

Practise this in a free mock

The final element covers what happens when things go wrong: how a firm must handle a complaint, where a dissatisfied consumer can turn, and what protection exists if a firm fails. The most reliable marks here come from keeping the two safety nets straight — the Ombudsman resolves disputes, the Compensation Scheme pays out when a firm cannot.

What complaints and redress covers in the UKFR exam

  • The DISP complaint-handling rules and the timescales a firm must meet, including the eight-week deadline for a final response
  • Eligible complainants — who is entitled to use the process
  • The Financial Ombudsman Service (FOS): its role, who can refer, the time limits, and its binding awards (currently up to £430,000 for the most recent acts or omissions)
  • The Financial Services Compensation Scheme (FSCS): the fund of last resort when an authorised firm cannot meet claims against it
  • The current FSCS limits — £85,000 per person per firm for deposits and for investment claims
  • The interaction between internal complaint handling, the FOS and the FSCS

Where candidates lose marks

Confusing the FOS with the FSCS. The Ombudsman settles a dispute with a firm that is still trading; the Compensation Scheme pays out when the firm has failed.

Forgetting the eight-week rule. A firm has up to eight weeks to send a final response before the complainant can go to the FOS.

Quoting the wrong limit. Deposit and investment protection are each £85,000 per person per firm, but other categories (such as some insurance) are protected differently.

Worked examples

Real questions from our bank, with the reasoning. No sign-in needed.

Sample question 1

A small trading company complains to an adviser firm and claims eligible complainant status as a micro-enterprise under DISP 2.7. Which description matches the micro-enterprise threshold the firm should apply?

  1. AFewer than 10 employees and turnover up to €2mCorrect
  2. BMore than 100 employees on the payroll
  3. CA business listed on the London Stock Exchange
  4. DA business with no cap on annual turnover
  5. EA state-owned commercial enterprise

Why: A micro-enterprise is defined as an entity with fewer than 10 employees and turnover or balance sheet not exceeding €2 million.

Sample question 2

An employer sponsoring a pension scheme becomes insolvent, and members ask whether the Pension Protection Fund can help. Which members qualify for PPF compensation?

  1. AMembers of eligible defined benefit pension schemesCorrect
  2. BMembers of defined contribution pension schemes
  3. CShareholders in the sponsoring employer
  4. DHolders of ordinary bank current accounts
  5. EHolders of general insurance policies

Why: The PPF covers defined benefit scheme members when their employer becomes insolvent.

Test yourself on complaints and redress

The free mock draws on every element — 75 questions in 90 minutes, marked against the 70% pass mark, with an explanation for every answer and a per-element breakdown at the end.

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The other four elements

The Regulatory Environment
The FCA, the PRA and the Bank of England, their objectives and the regulatory infrastructure.
The Financial Services and Markets Act 2000 and Financial Services Act 2012
FSMA 2000, regulated and prohibited activities, authorisation, and the FCA's powers.
Associated Legislation and Regulation
Money laundering, insider dealing, market abuse, and the Data Protection Act 2018.
FCA Conduct of Business (COBS) and Client Assets (CASS)
Client categorisation, suitability, financial promotions, and client money and custody.
Read the complete CISI UKFR guide

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