FINRA Series 6 Investment Company and Variable Contracts Products Representative ExaminationOpening and Maintaining Customer Accounts and Investment RecommendationsMedium
A registered representative receives a written complaint from a client alleging misrepresentation regarding a mutual fund investment. What is the immediate required action for the registered representative?
- AForward the written complaint to a supervisor or principal immediately.
- BAdvise the client to contact FINRA directly to file a formal dispute.
- CAttempt to resolve the complaint directly with the client to avoid escalation.
- DDocument the complaint and wait for the firm's legal department to contact them.
Show answer & explanationAnswer & explanation
Correct answer: A. Forward the written complaint to a supervisor or principal immediately.
FINRA rules require that all written customer complaints be forwarded immediately to a principal or supervisor. Representatives are not to attempt to resolve written complaints themselves.
Why the other options are wrong
- B. While clients can contact FINRA, it is the firm's responsibility to handle and report complaints, not to direct the client elsewhere immediately.
- C. Attempting to resolve a written complaint directly is a violation of FINRA rules, as all written complaints must be escalated.
- D. Waiting for the legal department is not the immediate required action; the complaint must first be escalated internally.
Customer Complaint Handling
FINRA rules dictate specific procedures for handling customer complaints, especially written ones, to ensure proper supervision and resolution.
- All written complaints must be forwarded to a principal.
- RRs should not attempt to resolve written complaints themselves.
- Firms are required to report certain complaints to FINRA.
Memory trick: Written complaint? Elevate, don't mediate!