The FSA has confirmed new complaints handling rules.

The new rules include the abolition of the ‘two-stage’ complaints handling rule to make sure firms resolve complaints fairly and do not dismiss them the first time, requiring persistence from the customer to pursue the complaint.

Firms will also be required to identify a senior individual responsible for complaints handling.

The regulator said there would be additional guidance to help firms understand the processes they might need in place to meet FSA requirements on root cause analysis.

There will also be further guidance requiring firms to take account of ombudsman decisions and previous customer complaints.

The consultation paper also confirms an increase to the limit on awards made by the Financial Ombudsman Service from £100,000 to £150,000.

Sheila Nicoll, the FSA’s director of conduct policy, said: “We would rather customers were not put in a position where they had to complain