Customer Complaints
Chapters in this video
- 0:00 What counts as a formal customer complaint
- 1:07 The golden rule: reps are messengers, not problem solvers
- 2:33 Written complaint files live at the OSJ for four years
- 4:07 When 30-day reporting to regulators kicks in
- 4:38 Form U4 settlement thresholds: $15,000 for reps, $25,000 for firms
- 5:38 Options complaints go to the exchange too
- 6:08 Escalating consequences and criminal exposure
- 7:08 Rapid-fire exam recap
What this video covers
- The formal definition of a customer complaint, including why both written and verbal grievances count and what activities they cover
- Why a registered representative (rep) must never attempt to settle a complaint independently or offer personal compensation
- The exact first step when receiving any complaint: immediate supervisory notification, plus the firm's duty to investigate and respond timely without retaliation
- Where written complaint records must be kept (the OSJ) and the unique four-year retention period versus three years for trade confirmations and six years for account records
- The 30-calendar-day reporting requirement for complaints involving theft, misappropriation, conversion, or forgery
- The dollar thresholds for settlement disclosure: $15,000 or more when the associated person is named, and $25,000 or more when the firm itself is the named party
- The additional requirement to promptly forward options-related complaints to the Chicago Board Options Exchange (Cboe)
Read the full lesson, free
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