Request a Demo Today

Release Date: 1st July 2013

To access the original FCA document, click here.


Policy Administration Services Limited (PAS) was fined £2,834,700 by the Financial Conduct Authority (FCA) for failing to adhere to Principles 3 and 6 of the FCA’s Principles for Businesses. The fine was reduced from an initial figure of £4,049,637 due to PAS’s early settlement of the case. The breaches occurred from 19 June 2009 to 27 September 2011, primarily involving inadequate complaint handling and poor management of systemic issues in the sale and administration of mobile phone insurance policies through its appointed representative, Phones 4u Limited.

PAS was found to have inadequate complaint handling procedures that did not ensure all complaints were handled according to FCA’s DISP rules. Specifically, PAS failed to categorise and record all customer expressions of dissatisfaction as complaints, inaccurately recorded details, and outcomes of customer complaints, and did not investigate some complaints fully, particularly those alleging mis-selling. This led to some customers not receiving appropriate remedial actions or redress.

The investigation revealed that PAS did not conduct thorough investigations into customer complaints, sometimes rejecting mis-selling complaints solely because the customer had signed a Direct Debit Mandate. Furthermore, PAS did not consistently undertake root cause analyses to identify and address systemic problems, which might have prevented the identification and rectification of recurring issues.

To prevent similar breaches, other firms should ensure that:

This case underscores the importance of effective complaint management systems and the need for firms to treat customer interests fairly, adhering strictly to regulatory standards to avoid similar sanctions.

Back to the Dear CEO letter archives.