Breinrock's Complaints Procedure

Introduction

If a customer wishes to make a complaint, this can be made verbally, by telephone or in person, or via a written communication delivered in person, via post, e-mail, or fax. In the first instance, the complaint should be handled by the account manager responsible for the account, in consultation with the Compliance Officer/MLRO, and resolution of the complaint sought.

If the complaint is capable of being resolved the same business day as it is received, any agreed course of action should be taken and a file note made and inserted on the customer's file, together with any copy correspondence.

If a complaint is not capable of resolution the same business day, a brief written explanation of the substance of the complaint should be provided by the account manager, along with any correspondence from the customer. An entry must be made in the Complaints Register, and the date of receipt recorded in the Complaints Log.

To ensure complaints are dealt with fairly, consistently, and promptly, the Compliance Officer must be consulted and sign off any proposed action or correspondence. The Compliance Officer will ensure the complaint is thoroughly investigated and handled in accordance with DIFC timelines.

If a complaint identifies a systemic or recurring issue, the Compliance Officer will notify the CEO and help resolve the matter via discussion and implementation of corrective measures.

The Second Payment Services Directive (PSD2) outlines requirements for dispute resolution, including timeframes and complaint reporting obligations.

What is a PSD complaint?

A PSD complaint is one that relates to the conduct of business rules in the Payment Services Regulations 2017 (PSRs). These rules cover:

  • Information that must be provided before and after a payment transaction (Part 6 of the PSRs)
  • Rights and obligations of both the service provider and the customer (e.g., charges, consent, liability) (Part 7 of the PSRs)

And an EMD complaint?

An EMD complaint concerns conduct of business rules in the Electronic Money Regulations 2011 (EMRs). Part 5 of the EMRs sets out rights and obligations relating to the issuance and redemption of e-money.

An eligible complainant is anyone who is entitled to bring a complaint to the Financial Ombudsman Service.

Complaint Handling Timeframes

When dealing with a PSD/EMD complaint, payment service providers must provide a full written response within 15 business days — or within 35 business days under exceptional circumstances.

A final response is a written reply that either:

  • Accepts the complaint and offers redress (which may or may not include financial compensation)
  • Offers redress without accepting the complaint
  • Rejects the complaint with an explanation

The final response must also inform the customer of their right to refer the complaint to the Financial Ombudsman Service (FOS).

If exceptional circumstances apply, we must notify the customer within 15 business days and explain the reason for the delay.

Customers have the right to refer their complaint to the FOS after 35 business days from when we received the complaint — or after 15 days if they haven’t received a holding response.

If we cannot issue a final response within the required timeframe, we must provide a written response that:

  • Explains why a final response is not yet available and gives an estimated timeline
  • Informs the complainant of their right to refer the complaint to the Financial Ombudsman Service
  • Includes a copy of the FOS standard explanatory leaflet

A complaint will be deemed closed once we send a final response or the customer accepts a previous response in writing.

All staff must sign a copy of the internal complaints procedures to confirm they have received, read, and agree to comply as part of their employment contract.

DIFC Reporting

Breinrock must complete the Payment Services Complaint Return annually.

We must be able to identify and triage PSD2 complaints, including separating out elements of complex complaints into PSD/EMD and non-PSD/EMD components.

The rules for handling complaints from eligible complainants are outlined in DISP (Dispute Resolution: Complaints sourcebook in the FCA Handbook). These rules differ depending on whether the complaint falls under PSD/EMD or not.

Rules for PSD/EMD complaints from non-eligible complainants are set out in Regulation 101 of the PSRs.

Where a complaint is a non-PSD complaint from a non-eligible complainant, neither DISP nor the PSRs apply — meaning there are no regulatory obligations for handling such complaints.