FINRA Series 6 Investment Company and Variable Contracts Products Representative ExaminationProcessing Customer Orders and TransactionsMedium
A registered representative receives a written complaint from a client alleging a misunderstanding regarding the performance of a variable annuity subaccount. The representative immediately resolves the issue to the client's satisfaction. What is the representative's next required action regarding this complaint?
- AInform FINRA directly about the resolved complaint.
- BFile the complaint in the client's records for internal review.
- CForward the written complaint to a principal for review and reporting.
- DNo further action is required since the issue has been resolved.
Show answer & explanationAnswer & explanation
Correct answer: C. Forward the written complaint to a principal for review and reporting.
Even if a written complaint is immediately resolved, FINRA rules require that all written complaints be forwarded to a principal for review. The principal then determines if the complaint needs to be reported to FINRA.
Why the other options are wrong
- A. This is incorrect; the principal, not the representative, is responsible for determining if a complaint needs to be reported to FINRA.
- B. While filing is part of the process, the immediate next step for a representative is to forward it to a principal.
- D. This is incorrect; all written complaints require principal review, regardless of resolution.
Written Customer Complaint Handling
Any written communication from a customer alleging a grievance must be forwarded to a principal for review and potential reporting, even if resolved.
- Applies to all written communications (email, letter, fax).
- Principal review is mandatory.
- Firm must maintain records of complaints.
Memory trick: Written Complaints always go 'UP' to the Principal.