Quick Answer
A written customer complaint starts a four-year recordkeeping duty, and specified events go to the Financial Industry Regulatory Authority (FINRA) within 30 calendar days. Disputes run to arbitration under the Customer Code or the Industry Code, sorted by who the parties are, and Form U4 must stay current.
Four clocks and four dollar figures carry nearly every point here.
Which One-Liners Win Points?
- Only a written complaint triggers the records rule, and the duty belongs to the member firm, not the office of supervisory jurisdiction (OSJ) where the file sits.
- The associated person reports a specified event to the firm. The firm reports it to FINRA. A person reporting directly to FINRA is the wrong party.
- The Form U5 non-duplication exception is wider than the Form U4 one, which excuses only externally driven events and must be marked. Neither touches the quarterly statistics.
- Sort a dispute by who the parties are, not what it is about: customer against member or associated person is the Customer Code, among members or associated persons is the Industry Code.
- Mediation is voluntary, needs every party's written agreement, and does not stay a pending arbitration unless all agree.
- No response to an information-and-testimony request draws a bar; answering late instead draws a suspension.
Which Numbers Matter Most?
| Item | Value |
|---|---|
| Written complaint file | at least 4 years, no stated start date |
| Specified event report | 30 calendar days after the firm knows or should have known |
| Disposed civil claim or arbitration | more than $15,000, or more than $25,000 when the member itself is sued |
| Internal discipline of a person | withheld pay or a fine of more than $2,500 |
| Quarterly complaint statistics | 15th day of the month following the calendar quarter |
| Arbitration eligibility | 6 years from the event |
| Panel size, exclusive of interest and expenses | 1 arbitrator at $50,000 or less, with simplified procedures; 1 up to $100,000; 3 above, unless all parties agree in writing |
| Form U4 amendment | 30 days, or 10 days for a statutory disqualification |
Which Gotchas Trip Students Up?
Exam Tip: Gotchas
- The $2,500 minor-violation figure is not the $2,500 internal-discipline test.
- A six-year dismissal closes the arbitration door, not the courthouse.
- The Form U4 arbitration disclosure runs to nine numbered items, and goes to the person signing the form; the customer-facing predispute disclosure runs to seven.
One-Breath Recap
A written customer complaint puts a four-year file at the office of supervisory jurisdiction, kept by the member firm, not that office. Specified events reach FINRA within 30 calendar days, reported by the firm, never by the person directly, at more than $15,000 generally and more than $25,000 where the firm itself is sued. Disputes go to arbitration by who the parties are, barred after six years from arbitration but not from court, before one or three arbitrators by claim size. Form U4 is amended within 30 days, or 10 for a statutory disqualification.
Need more than the recap? Read the full Complaints, Disputes and Reporting unit.