Complaints_Protection Afforded to Clients.docx

### Complaints **Client complaints** For the purposes of Section 5 of the rules, a client complaint is defined as any complaint in relation to the provision of regulated services, in which the client alleges that he has suffered, or is likely to suffer, financial prejudice as a result of the tradi...

### Complaints **Client complaints** For the purposes of Section 5 of the rules, a client complaint is defined as any complaint in relation to the provision of regulated services, in which the client alleges that he has suffered, or is likely to suffer, financial prejudice as a result of the trading member -- - contravening or failing to comply with any instruction given by the client, or any agreement or mandate entered into with the client; - contravening or failing to comply with the rules and the directives; - acting dishonestly, negligently, or recklessly; or - treating the client unreasonably or unfairly. Every trading member must establish and maintain appropriate procedures for the handling of client complaints. **Internal complaint handling procedures** A trading member's internal complaint handling procedures must provide for -- - information regarding the JSE Ombud Scheme to be provided to a client at the time that the member notifies the client of the member's decision, which information must include the existence of the Scheme, the Scheme's contact details, and the procedure for lodging an unresolved complaint with the Scheme; - the receipt of oral or written complaints; - the appropriate investigation of complaints; - an appropriate decision-making process in relation to the response to a client complaint; - notification of the decision to the client; and - the recording of complaints. A trading member's internal complaint handling procedures must be designed to ensure that -- - all complaints are handled fairly, effectively, and promptly; - recurring or systemic problems are identified, investigated, and remedied; - the number of unresolved complaints to be referred to the JSE in terms of the rule 5.60 are minimised; - complaints are investigated by an employee of sufficient competence who, where appropriate, was not directly involved in the matter which is the subject of a complaint; - the employee responsible for the resolution of complaints has the necessary authority to resolve complaints or has ready access to an employee who has the necessary authority; and - relevant employees are aware of the trading member's internal complaint handling - procedures and comply with them. **Timeous response to complaints** A trading member must respond to a client complaint within 4 weeks of receiving the complaint or, within such period, provide the complainant with an appropriate explanation as to why the trading member is not, at that time, in a position to respond and must indicate by when the trading member will respond. **Redress** - Where a trading member decides that redress in the form of compensation is appropriate in resolving a complaint, the trading member must provide the complainant with fair compensation and must comply with any offer of compensation made by it which the complainant accepts. - Where a trading member decides that redress in a form other than compensation is appropriate in resolving a complaint, the trading member must provide the redress as soon as practicable. **Recording of complaints** A trading member must maintain a record of all client complaints. The record of each complaint must include- - the identity of the complainant; - the substance of the complaint; and - all correspondence in relation to the complaint. The records must be retained by the trading member for a period of 5 years from the date of the receipt of the complaint. **Unresolved client complaints** - A client complaint will be deemed to be unresolved if the complainant is not satisfied with the resolution of the complaint proposed by the trading member. - A complainant may lodge an unresolved complaint, in writing, with the Director: Market Regulation giving full particulars of the matter concerned. - In order for an unresolved complaint to be considered by the JSE Market Regulation Division, the complaint must be lodged with the Director: Market Regulation within 4 weeks of the receipt by the complainant of the trading member's response and within 6 months of the conduct by the trading member giving rise to the complaint. - An unresolved complaint which is lodged subsequent to the period will be considered, provided that failure to lodge the complaint within the relevant period was through no fault of the client. - The JSE Market Regulation Division may request the trading member and the complainant to provide copies of all relevant correspondence and documentation that is required to review the complaint. - The JSE Market Regulation Division will endeavor to facilitate a resolution of the complaint between the trading member and the complainant. - If the JSE Market Regulation Division is unable to facilitate a resolution of the complaint within 4 weeks of lodging of the complaint with it, the Director: Market Regulation will refer the unresolved complaint to the Company Secretary of the JSE to be dealt with in terms of the dispute resolution rules.