Client Complaint Response Protocol

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Questions and Answers

What is the maximum time a trading member has to respond to a client complaint?

6 weeks

4 weeks (correct)

1 month

2 weeks

What must a trading member include in the record of a complaint?

The summary of other clients' similar complaints

All correspondence in relation to the complaint (correct)

The financial status of the complainant

The trading member's staff involved in the complaint

Which of the following is NOT a required condition for a client to lodge an unresolved complaint?

Within 6 months of the trading member's conduct

After the complainant has accepted compensation (correct)

Within 4 weeks of the trading member's response

Providing full particulars of the matter

What form of redress is a trading member required to provide if compensation is deemed appropriate?

Fair compensation Signup and view all the answers

How long must a trading member retain records of client complaints?

5 years Signup and view all the answers

What happens if a complainant is not satisfied with the resolution of a complaint?

The complaint is considered unresolved Signup and view all the answers

Which of the following is a condition for unresolved complaints to be reviewed by the JSE Market Regulation Division?

It must be lodged within 4 weeks of the trading member's response Signup and view all the answers

What is the significance of notifying clients about delays in responding to complaints?

It shows the trading member's accountability Signup and view all the answers

Which of the following best describes the requirements for a trading member's internal complaint handling procedures?

They must notify clients about the JSE Ombud Scheme upon decision notification. Signup and view all the answers

What is NOT included in the internal complaint handling procedures required by trading members?

Developing a process to maximize unresolved complaints. Signup and view all the answers

Which of the following is a correct procedure for resolving client complaints according to the internal guidelines?

Complaints should be investigated by an impartial employee who wasn’t involved in the matter. Signup and view all the answers

What action is required if a complaint remains unresolved after the member's decision?

The client should be informed about the option to lodge an unresolved complaint with the JSE Ombud Scheme. Signup and view all the answers

Which characteristic is NOT necessary for the employee responsible for resolving complaints?

The ability to make final decisions without needing further input. Signup and view all the answers

What aspect is essential to ensure in recording client complaints?

Maintaining a transparent and comprehensive record of all complaints. Signup and view all the answers

In the context of complaint resolution, what is the primary goal regarding unresolved complaints?

To ensure they are handled promptly and effectively. Signup and view all the answers

Which process is necessary for trading members when handling complaints of a financial nature?

Every complaint must be properly investigated before any response. Signup and view all the answers

Study Notes

Timeous Response to Complaints

Trading members must reply to client complaints within 4 weeks of receipt.
If unable to respond in that time, they must explain the delay and provide a new timeline for response.

Redress

Trading members must offer fair compensation if deemed appropriate for resolving a complaint.
Compensation offers that the complainant accepts must be complied with.
If redress takes a form other than compensation, it must be provided promptly.

Recording of Complaints

Trading members are required to keep records of all client complaints, including:
- Complainant's identity.
- Substance of the complaint.
- All related correspondence.
Records must be maintained for 5 years from the complaint receipt date.

Unresolved Client Complaints

A complaint is unresolved if the complainant is dissatisfied with the proposed resolution.
Unresolved complaints can be escalated in writing to the Director: Market Regulation with detailed information.
Complaints must be lodged within 4 weeks of receiving the trading member's response, and within 6 months of the incident.
Late complaints may be considered if the delay was not the client's fault.
The JSE Market Regulation Division may request copies of relevant documentation for review.

Client Complaints Definition

A client complaint involves allegations of financial prejudice due to:
- Non-compliance with instructions or agreements.
- Violations of rules and directives.
- Dishonest, negligent, or reckless actions.
- Unreasonable or unfair treatment of the client.

Internal Complaint Handling Procedures

Trading members must establish procedures for handling complaints, including:
- Providing information about the JSE Ombud Scheme during complaint notifications.
- Mechanisms for receiving oral or written complaints.
- Appropriate investigation methods.
- Clear decision-making processes for responses to complaints.
- Notification of decisions to clients.
- Recording of complaints.
Procedures must ensure complaints are handled fairly, effectively, and quickly.
Systemic issues should be identified and remedied to minimize unresolved complaints referred to the JSE.
Investigations must be conducted by competent employees not directly involved in the issues.
Employees responsible for resolving complaints must have adequate authority.
All relevant employees must be aware of and comply with handling procedures.

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Description

This quiz focuses on the procedures and timelines for responding to client complaints in a trading environment. It includes aspects of compensation and redress for clients based on the nature of their complaints. Test your understanding of these critical compliance requirements.