Financial Services and Pensions Ombudsman: How FSPO Complaints Work in Ireland

The Financial Services and Pensions Ombudsman (FSPO) is the independent statutory body in Ireland that deals with unresolved complaints about regulated financial service providers and pension providers. A complaint normally starts with the firm itself, which must handle it under rules such as the Central Bank's Consumer Protection Code (see our guide on Consumer Protection Code staff training in Ireland). The FSPO is the next step if that process does not resolve the matter. This guide explains, in outline, who can complain, what the process looks like and what firms and their staff should take from it.

It is written for managers, compliance officers and finance professionals in Dublin and across Ireland, as well as for employees who want to understand how a complaint against their own pension scheme or financial provider would move forward. It is a general overview, not legal advice.

What the FSPO is

According to Citizens Information (page edited 28 February 2023), the FSPO is an independent, statutory body that investigates, mediates and adjudicates unresolved complaints about financial services firms and pension providers. The FSPO's own website describes the service as independent, fair and impartial, and states that its services are free and that it will never seek payment from a complainant to progress a complaint.

The body was set up by the Financial Services and Pensions Ombudsman Act 2017 on irishstatutebook.ie. The long title of the Act shows that it established the Office of the Ombudsman, conferred functions on it, provided for a complaints procedure and for appeals, and dissolved the earlier Financial Services Ombudsman's Bureau, the Financial Services Ombudsman Council and the office of the Pensions Ombudsman. Section 12 of the Act describes the Ombudsman's principal function as investigating complaints in an appropriate manner proportionate to the nature of the complaint, using informal means, mediation, formal investigation or a combination. The same section says that, when handling a particular complaint, the Ombudsman acts informally and according to equity, good conscience and the substantial merits of the complaint, without undue regard to technicality or legal form.

Who can complain, and about whom

The Act defines a complaint as one made under the Act about the conduct of a financial service provider or a pension provider. A complainant is a consumer, an actual or potential beneficiary of a pension arrangement, someone acting for such a beneficiary, or a class of person prescribed by regulation. The Act defines "consumer" separately for financial services and pensions, and for financial services the definition reaches some small businesses and bodies subject to a turnover test. This guide does not set out that test; check the definition in section 2 of the Act or ask the FSPO if you are unsure whether you qualify.

Citizens Information lists the kinds of firm that can be the subject of a complaint: banks, credit unions, insurers, investment firms, brokers, stockbrokers, mortgage intermediaries, moneylenders, hire purchase companies, pension providers and other regulated firms. Two practical consequences follow for employers and professionals:

• Credit unions are within scope. Staff and boards in the sector should understand that a member's unresolved complaint can end up with the FSPO. Our guide to credit union regulation and governance in Ireland covers the wider regulatory picture.
• Insurance intermediaries are within scope. Brokers and other distributors deal with customers directly, so how they record and answer complaints matters. See our overview of insurance distribution and intermediaries in Ireland.

The FSPO's "How to Make a Complaint" leaflet (no publication date is shown on it) adds several points about scope. All owners of a joint account or policy must make the complaint together. Social welfare pensions go to the Department of Employment Affairs and Social Protection, data protection matters go to the Data Protection Commission and discrimination complaints under the Equal Status Acts go to the Workplace Relations Commission. Complaints that arise purely from a provider's commercial decision, such as refusing credit or insurance, are not covered, and the FSPO cannot deal with a complaint that is, or has been, the subject of legal proceedings. Because the leaflet is undated, treat these exclusions as a guide and confirm the current position on the FSPO website.

Step one: complain to the provider first

Both Citizens Information and the FSPO leaflet say the complaint must go to the firm before it comes to the FSPO. Citizens Information notes that all banks, insurers, brokers, investment companies and other financial services firms must by law have a complaints process, and suggests an informal complaint first to the person you normally deal with, followed by a formal written complaint if that does not work.

It also says that under the Central Bank's Consumer Protection Code firms must handle complaints fairly and speedily, name a dedicated contact person and send updates within set timelines. If the firm does not resolve the complaint, it must issue a final response letter setting out the steps it took. The leaflet says that for pension complaints the equivalent document is a notice of determination at the end of the pension provider's internal process.

Citizens Information states, in the words of its page, that you must give the firm 40 working days to resolve your complaint, and that the Code's complaints-handling rules do not apply if the firm has resolved the complaint within 5 working days. Time periods like these can be changed by the Central Bank or by legislation, so check the current Citizens Information and FSPO pages on the day.

Step two: the FSPO process

According to the FSPO leaflet and Citizens Information, the process runs roughly as follows:

1. Submit the complaint. The complainant uses the FSPO's standard complaint form and sends a copy of the provider's final response. Citizens Information also says you can ask the FSPO to follow up if the firm has not issued a final response.
2. Dispute resolution or mediation. The leaflet explains that the FSPO helps both sides to reach an agreement, and says it resolves the majority of complaints informally in this way.
3. Formal investigation. If agreement is not reached, the FSPO may investigate formally. Citizens Information says the FSPO reviews submissions from both sides and adjudicates.
4. Decision. The Ombudsman issues a decision that is binding on both parties.

The Act gives the FSPO powers to carry out these functions, including powers in relation to the investigation of complaints (the contents page shows this as section 47). The detailed provisions on findings and directions sit in the later sections of the Act; read the Act itself if you need the exact legal test.

Possible outcomes and appeals

Citizens Information says that if a complaint is upheld, the FSPO can direct the company to fix the problem, pay compensation, or both, and that if it is not upheld no action is directed. The leaflet adds that the FSPO publishes decisions and pension case studies, may name providers that have a certain number of complaints upheld in a year, and can raise concerns with the Central Bank of Ireland or the Pensions Authority. The leaflet does not state any compensation amount. The Act allows for a maximum compensation amount to be set by regulation, so any cap is a matter for the current regulations rather than this guide.

A decision can only be challenged through an appeal to the High Court, according to both sources. The Act also makes clear that where a party appeals a decision upholding a complaint, the complaint counts as upheld for reporting purposes only if the decision is affirmed on appeal or the appeal is withdrawn, struck out or abandoned.

Time limits

Time limits matter, and they are one of the first things to check. Citizens Information (page edited 28 February 2023) states that a 6 year limit normally applies, running from the date of the problem, with a 3 year limit from the date you became aware of it for certain cases involving long term products. Its page defines a long term product as a financial product with a term of 5 years and 1 month or more. The FSPO also has a dedicated time-limits page, which sets out further rules for long-term financial services and pension providers and says the FSPO may in certain circumstances consider complaints outside the usual timeframes. That page shows no publication or update date, and this guide does not repeat its detail, including the cut-off dates it gives for long-term financial services and pension complaints. Check the FSPO page directly, and contact the FSPO early if you are near a limit, as its leaflet advises.

What this means for firms and their staff

The law and guidance above point to a few practical lessons for any firm in scope. The following are our own suggestions, not legal requirements:

• Our suggestion: make sure front-line staff can recognise a complaint, even when the customer does not use the word, and know how to route it to the complaints process.
• Our suggestion: keep a clear, dated file for each complaint, including the final response letter, since the FSPO will ask for it and both sides' submissions are reviewed.
• Our suggestion: train staff on how the firm's internal process connects to the FSPO, so customers are told accurately what happens next.
• Our suggestion: review recurring complaint themes. The FSPO publishes decisions, which gives firms a way to learn from outcomes across the sector.

For pension schemes run by Irish employers, remember that an employer, trustee, administrator or insurer involved in an occupational scheme can be a pension provider for these purposes, according to the leaflet. HR and finance teams in Dublin businesses with occupational schemes should therefore know who handles member complaints.

Learnsignal's offices are off Baggot Street in Dublin, and we offer in-person training from there. For current details, see our CPD pages.

Frequently asked questions

Can I go straight to the FSPO without complaining to my provider?

Citizens Information says the FSPO should be used only after you have been through the firm's complaints process and have its final response letter, although you can ask the FSPO to follow up if the firm has not issued one. The FSPO leaflet makes the same point: give the provider the chance to resolve the issue first.

Does it cost anything to complain to the FSPO?

The FSPO states that its services are free. Citizens Information adds that solicitor or professional fees you choose to incur are your own responsibility.

Is the FSPO's decision final?

The decision is binding on both the complainant and the provider, and it can only be challenged by an appeal to the High Court, according to Citizens Information and the FSPO leaflet.

What if my complaint is about a decision to refuse credit or insurance?

The FSPO leaflet says complaints that arise from a provider's commercial decision, such as refusing credit or insurance, are not covered. Because the leaflet is undated, confirm with the FSPO whether your situation falls inside its remit.

Where can I check the current rules?

Check the FSPO website, Citizens Information and the Financial Services and Pensions Ombudsman Act 2017 on irishstatutebook.ie. Time limits, procedures and any compensation cap can change.

In short, the FSPO is the independent next step when a regulated firm or pension provider has not resolved a complaint. Understanding the route helps customers use it and helps firms prepare for it.