BareRock is spearheading the industry by empowering advice firms with the trust and support they need to resolve customer dissatisfaction quickly and effectively, avoiding triggering lengthy complaint-handling procedures that are damaging reputations and firm-client relationships.
BareRock has introduced a groundbreaking solution that helps firms to comply with the FCA’s ‘3-Day Rule’ (DISP 1.5) while ensuring they do not breach the T&Cs of their Professional Indemnity Insurance (PII) policy. The solution includes a unique clause and specially crafted template wording that enables firms to directly address complaints within the required 3-day period, provided that the value of any redress falls within their excess amount. This innovation allows firms to handle complaints efficiently without risking their PII coverage.
BareRock CEO and Founder Jonathan Newell believes that the current industry framework, along with outdated systems, makes complying with the 3-Day Rule virtually impossible for most firms. This includes standard notification requirements as well as the process of engaging and awaiting instructions from a PI insurer, which inevitably leads to a breach of the threshold.
Newell’s comments follow those made Abbey Thomas, Chief Executive and Chief Ombudsman at the FOS during the FCA’s webinar in July Taking the leap on the Consumer Duty:1 year on, where she talked about the need to listen and use complaint data and feedback to benefit both consumers and businesses.
The FCA’s ‘3 Day Rule’ rule was designed to benefit customers and advice firms with swift resolution of complaints. It means that if a matter is successfully resolved between parties within this timeframe, firms do not have to instigate their complaint handling procedure which can disproportionately consume time and resources while exacerbating consumer dissatisfaction.
Jonathan Newell adds: “The ‘3 Day Rule’ framework was designed to benefit both customers and advice firms with a mechanism to resolve complaints quickly. However, using it successfully is hindered with barriers and negative friction points, including the usual PII claims handling provisions. Breaching the 3-day limit means firms have no choice but to trigger their formal complaint resolution process. Often, we’re talking about minor issues that could and should be resolved immediately, without PII frustrating the situation. The outdated thinking adopted by the legacy market is damaging reputations of thousands of advice firms. This is driving poor customer outcomes because of red tape and a lack of lateral thinking – nobody benefits.
“At BareRock, we are taking a common-sense approach. We trust the firms we work with and treat them like the professionals they are by equipping them with the tools they need to make sound business decisions. Our expertise in the industry has shown us that resolving complaints quickly and effectively can turn challenges into opportunities to cement and strengthen adviser-client relationships. It’s about doing the right thing by advisers so they can do the right thing for their clients.”
Commenting on the solution, Maddie Delboy, Compliance Manager, The Verve Group added: “On the surface, the FCA’s 3-day summary complaint resolution guideline feels like the proactive compliance that we like to see and support. However, we are well aware that in reality, this resolution is essentially redundant on the basis of the requirement for firms to notify PI insurers, and the mismatch on time scales.
“BareRock’s innovative policy is a game-changer and we will be able to guide firms to swiftly resolve complaints (within their excess), enhancing client satisfaction, without compromising insurance obligations. This approach shines light on what is proactive compliance, combined with efficient customer service, addressing long-standing industry challenge. The positive impact for all will be welcomed.”
