Securities Industry Essentials (SIE) ExamUnderstanding Trading, Customer Accounts, and Prohibited ActivitiesMedium
A registered representative (RR) receives a verbal complaint from a client regarding a recent trade error. According to FINRA rules, what is the RR's immediate responsibility?
- AForward the complaint immediately to their supervisor or principal.
- BDocument the complaint in their personal notes and monitor the situation.
- CInform the client that only written complaints are officially recognized.
- DAttempt to resolve the issue directly with the client.
Show answer & explanationAnswer & explanation
Correct answer: A. Forward the complaint immediately to their supervisor or principal.
FINRA rules require that all customer complaints, whether written or verbal, be promptly forwarded to a principal or supervisor for review and resolution. RRs should not attempt to resolve them independently.
Why the other options are wrong
- B. Personal notes are insufficient; official firm procedures for complaint handling must be followed.
- C. Verbal complaints are recognized and must be handled according to the same procedures as written complaints.
- D. RRs should not attempt to resolve complaints independently; they must involve a principal.
Customer Complaint Handling
The formal process a brokerage firm must follow when a customer expresses dissatisfaction or alleges a grievance.
- All complaints (written or verbal) must be reported.
- Must be forwarded to a principal/supervisor.
- Firm must maintain a record of all complaints and their resolution.
Memory trick: Verbal or written, complaints go 'Up the Chain' to a Principal.