CSSF Circular 19/718: adoption of the Guidelines on complaints handling for the securities and banking sector has been saved
CSSF Circular 19/718: adoption of the Guidelines on complaints handling for the securities and banking sector
5 May 2019
Regulatory News Alert
Context and objectives
In October 2018, the Joint Committee of the European Supervisory Authorities (“ESAs”) published revised guidelines on complaints handling by entities of the European securities and banking sectors (“Guidelines”).
The purpose of the Guidelines is to clarify expectations on firms’ organization relating to complaints handling as well as to provide guidance on the provision of information to complainants and on the procedures for responding to complaints. In addition, the guidelines seek to harmonize firms’ arrangements for complaints handling – therefore, a minimum level of supervisory convergence across the EU is required.
Extended scope of application
On 30 April 2019 the Commission de Surveillance du Secteur Financier (“CSSF”) announced its compliance with the revised Guidelines. Thus, the revised Guidelines are now fully applicable to the Luxembourgish securities and banking sectors.
While the content of the Guidelines remains largely unchanged from their previous version of 27 May 2014 (now repealed), the CSSF explicitly draws attention to the guidelines’ extended scope, now including the institutions established under the revised Payment Service Directive (PSD2) and the Mortgage Credit Directive (MCD). This extension will ensure that an identical set of requirements for complaints handling continues to apply to all financial institutions across the banking, investment, and insurance sectors.
Complaints handling arrangements
To ensure full compliance with regulatory requirements, entities within the scope should review and update their complaints management approach, considering the following aspects in particular:
1. A complaints management policy is to be set up (in written form), made available to all staff and implemented – senior management should carry the main responsibility;
2. A complaints management function should be put in place;
3. A secure register of complaints should be maintained;
4. Data covering the number of complaints received should be reported to the CSSF;
5. An adequate internal process to follow up on complaints has to be put in place;
6. Information related to the complaints-handling process needs to be provided, e.g. the receipt of a complaint should be acknowledged and details of the process should be published online;
7. Specific procedures for responding to complaints should be followed.
How Deloitte can help
As part of its Regulatory Watch Service, Deloitte actively monitors the latest regulatory developments and subsequent publications on an ongoing basis. We carefully analyze all relevant published documents in order to identify any changes and to provide the most updated view to our clients.
Our team of experts is available to answer any questions you may have on this key topic for your market place and we will be pleased to facilitate a workshop to discuss the latest regulatory updates as well as potential operational impacts and remediation scenarios for your business.