A customer sends a text message to a registered representative stating, 'I'm upset—you put me in a fund without asking me first, please fix this.' The representative resolves the matter informally with a branch supervisor, and the customer seems satisfied. Under FINRA rules, how must this text message be treated?
- AIt only becomes a reportable complaint if the customer later confirms it in a signed letter
- BIt must be treated as a written complaint and reviewed/retained accordingly, since electronic communications qualify as 'written' under FINRA rules
- CIt need not be treated as a complaint because it was not submitted through the firm's official complaint channel
- DIt is exempt from complaint handling requirements because it was resolved informally
Show answer & explanationAnswer & explanation
Correct answer: B. It must be treated as a written complaint and reviewed/retained accordingly, since electronic communications qualify as 'written' under FINRA rules
FINRA defines a written complaint broadly to include any electronic communication—email, text message, social media, etc.—alleging a grievance involving the activities of the firm or its associated persons. Regardless of the channel used or whether the matter was resolved informally, the communication must be treated, reviewed, and retained as a written complaint under FINRA Rules 4513 and 4530.
Why the other options are wrong
- A. No additional written confirmation is required; the electronic message itself already satisfies the 'written' definition.
- C. The channel through which a complaint arrives does not determine its status; electronic messages still count.
- D. Informal resolution does not exempt the firm from its obligation to document and retain the complaint.
Written Complaint Definition (Electronic)
Under FINRA rules, a 'written complaint' includes any electronic communication (email, text, social media) alleging a grievance about firm or representative conduct, regardless of resolution.
- Electronic communications qualify as 'written' complaints
- Must be retained and reviewed per Rules 4513 and 4530
- Informal resolution does not eliminate documentation obligations
Memory trick: A text of distress is still a complaint on record.