3 Questions
When addressing customer complaints, FINA may require the firm or representative to do all the following except A. provide information orally. B. give testimony under oath. C. provide access to any books. D. testify in front of a grand jury.
testify in front of a grand jury.
- A customer accusation of churning an account will be
A. aligned with the firm's directives of resolving issues.
B. mediated under the Code of Arbitration Procedure.
C. resolved through the Code of Procedure.
D. brought before the proper panel via legal representation.
resolved through the Code of Procedure.
- Nonpublic arbitrators meet which of the following criteria?
A. Any person who worked in the financial industry for any duration
B. Private persons who were not associated with a mutual fund
C. An attorney who has represented a broker-dealer in a civil case once in the last five years
D. A retail investor who has filed a complaint against a broker-dealer in the last two years
Any person who worked in the financial industry for any duration
Study Notes
Responding to Customer Complaints
- FINA may require firms or representatives to provide information orally, give testimony under oath, or provide access to books when addressing customer complaints.
- However, firms or representatives are not required to testify in front of a grand jury.
Handling Customer Accusations
- Customer accusations of churning an account are resolved through the Code of Arbitration Procedure.
- Accusations are not aligned with the firm's directives, mediated under the Code of Procedure, or brought before a panel via legal representation.
Nonpublic Arbitrators
- Nonpublic arbitrators are individuals who do not work in the financial industry or have any affiliation with a mutual fund.
- They are not attorneys who have represented a broker-dealer in a civil case within the last five years or retail investors who have filed a complaint against a broker-dealer within the last two years.
Test your knowledge on the requirements by FINRA when addressing customer complaints. Identify which action is not required by the firm or representative in such situations.
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