5.c

Question 1

What is a ‘Complaint’?

Answer 1

A complaint is any written grievance from a customer. ‘Written’ includes paper letters, emails, text messages, social media posts, etc. Oral (spoken) complaints do not have regulatory standing, though firms will have their own internal procedures for them.

Question 2

What is the first step a registered representative must take when they receive a written customer complaint?

Answer 2

They must immediately forward the complaint to a supervising principal. A registered representative should never attempt to resolve a complaint on their own.

Question 3

How long must a firm maintain records of written customer complaints?

Answer 3

For a minimum of four years after the complaint has been resolved. Firms must also submit a quarterly report on all written complaints to FINRA.

Question 4

If a customer decides to withdraw a written complaint, can the firm discard the record?

Answer 4

No. A record of the complaint and its resolution must still be maintained for four years, and it must still be included in the firm’s quarterly report to FINRA.

Question 5

What is mediation, and when is it used?

Answer 5

Mediation is an informal process where a neutral third party (a mediator) helps both sides try to reach a mutually acceptable resolution. FINRA encourages parties to attempt mediation before beginning the more formal and costly arbitration process.

Question 6

How is the settlement finalized if a dispute is successfully resolved through mediation?

Answer 6

The issue is considered settled when both parties sign a memo of understanding (MOU).

Question 7

What is a member firm’s obligation regarding the FINRA manual?

Answer 7

All member firms must make a current copy of the FINRA manual available for examination by customers upon their request. Providing electronic access to the manual is acceptable.