Client Complaints and Reporting Procedures
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What must be done if a client expresses a serious complaint including suspected forgery?

  • Handle the complaint within the branch without external notification.
  • Contact the MFDA or securities regulators immediately.
  • Report the complaint to the RCO or head office compliance. (correct)
  • Inform the client directly of the investigation process.

    • Who is responsible for initiating contact with the MFDA or securities regulators regarding a complaint?

  • Any branch staff member involved in the complaint.
  • The sales representative directly addressing the complaint.
  • The head office or RCO instructing the BCO. (correct)
  • The BCO upon receiving the complaint.

    • What is required of every registered dealer regarding client complaints?

  • They must provide a written explanation to clients for all complaints submitted.
  • They must handle all complaints internally without outside mediation.
  • They must ensure an independent dispute resolution service is available at the dealer’s cost. (correct)
  • They are required to eliminate all client complaints before they escalate.

    • In the event of unresolved complaints, what must clients do before escalating to OBSI?

    <p>Attempt to resolve the dispute directly with the dealer.</p> Signup and view all the answers

    What action should the BCO take if a statement of claim is received?

    <p>Forward the claim to the branch’s legal department immediately.</p> Signup and view all the answers

    What may happen after a dispute is resolved?

    <p>A copy of the resolution letter must be kept for record retention.</p> Signup and view all the answers

    What is a potential method for resolving a client complaint according to head office decisions?

    <p>Offering a cash payment or debt forgiveness.</p> Signup and view all the answers

    Which entity is independent and investigates unresolved financial service complaints?

    <p>OBSI.</p> Signup and view all the answers

    What is the maximum number of days within which a dealer must provide a decision on a client complaint?

    <p>90 days</p> Signup and view all the answers

    Which of the following must be provided to complainants when a written complaint is received?

    <p>Notice of eligibility for independent dispute resolution services</p> Signup and view all the answers

    What is the role of senior management in relation to client complaints alleging serious misconduct?

    <p>They must be informed of all complaints alleging serious misconduct.</p> Signup and view all the answers

    What documentation must mutual fund dealers in Quebec file annually with the AMF?

    <p>An annual report detailing their complaint handling policy and types of complaints</p> Signup and view all the answers

    Who should be made aware of a client complaint involving a registered salesperson?

    <p>The registered salesperson and their supervisors</p> Signup and view all the answers

    What should be done if a client requests a copy of their complaint file?

    <p>The file should be transferred to the appropriate authority.</p> Signup and view all the answers

    Which personnel are qualified to handle investigations into client complaints?

    <p>A qualified supervisor or member of the compliance staff</p> Signup and view all the answers

    What should compliance officers determine regarding a client complaint?

    <p>The nature of the complaint and the complainant's expectations</p> Signup and view all the answers

    What should be done immediately upon receiving a serious complaint involving allegations of negligence?

    <p>Notify the RCO and provide documentation of communications.</p> Signup and view all the answers

    What is a potential reason for a branch to cease dealing with a client?

    <p>The client has been trading excessively in mutual funds.</p> Signup and view all the answers

    Which type of complaints should prompt an immediate investigation?

    <p>Complaints alleging improper conduct by a sales representative.</p> Signup and view all the answers

    What is the role of branch personnel when a complaint is being investigated by the RCO?

    <p>They must provide cooperation and timely feedback.</p> Signup and view all the answers

    How should the sales representative be involved in a client complaint investigation?

    <p>They must review their other activities to determine the context of the complaint.</p> Signup and view all the answers

    What is expected of dealers regarding breaches of regulatory or dealer requirements?

    <p>To establish internal disciplinary measures for breaches.</p> Signup and view all the answers

    What factors should be considered when determining if a sales representative's violation is an isolated act?

    <p>Patterns of transgressions or isolated incidents.</p> Signup and view all the answers

    What type of correspondence must be provided to the RCO when reporting severe client complaints?

    <p>All written communication with the client and notes from conversations.</p> Signup and view all the answers

    Study Notes

    Client Complaints

    • Clients who have grievances should report them to the Regional Compliance Officer(RCO).
    • If a branch decides to cease dealing with a client due to problematic behaviour, this should be communicated to the RCO and head office.
    • Certain complaints should be immediately reported to the RCO, including complaints alleging improper conduct by a sales representative.
    • These complaints may involve unsuitable trading, discretionary trading, or violations of internal policies.
    • The MFDA requires dealers to have established procedures to address breaches of regulatory or dealer requirements.
    • Dealers must be able to handle and document client complaints, offering dispute resolution services and clearly outlining the complaint resolution process.

    Reporting

    • Complaints should be reported to the RCO, as well as the head office compliance staff, promptly.
    • The information needed to determine the nature of the complaint includes the complainant's expectations for resolution and whether financial harm is alleged.

    Regulatory Considerations

    • The MFDA and securities regulators must be informed promptly of serious complaints, especially those involving suspected forgery, theft, or misappropriation of funds.
    • The MFDA mandates that registered dealers offer independent dispute resolution or mediation services to resolve complaints.

    Litigation

    • The branch's legal department should handle any statement of claim received from a client.

    Ombudsman for Banking Services and Investments

    • Unresolved financial services complaints from individuals and small businesses are investigated by the Ombudsman for Banking Services and Investments (OBSI).
    • Clients must first attempt to resolve the dispute with the dealer before approaching OBSI.
    • OBSI investigates the complaints and recommends a course of action if the client disagrees with the dealer's resolution.

    Complaint Resolution

    • The Branch Compliance Officer (BCO) may be responsible for conveying the resolution to the client, indicating that no further action is planned.
    • The resolution documentation should be included in the client's file and sent to the head office compliance department and/or the RCO.
    • Head office may settle a client complaint through a cash payment, debt forgiveness, or other methods.

    Quebec

    • Mutual fund dealers in Quebec have specific requirements for handling complaints:
      • Establishing a policy for handling complaints, claims, and disputes.
      • Informing complainants about their right to request transfer of their file to the Autorité des marchés financiers (AMF).
      • Transferring files upon request from clients.
      • Submitting an annual report to the AMF, outlining their complaint-handling policy and the number and type of complaints received.

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    Description

    This quiz covers the procedures for addressing client complaints within a financial dealership context. It emphasizes the role of the Regional Compliance Officer and the importance of proper documentation and communication for resolving grievances. Understand the responsibilities of dealers and the regulatory requirements governing client complaints.

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