Quick Answer
A customer complaint is a grievance from a customer or an authorized representative. It must involve the activities of the member or an associated person, and connect to soliciting or executing a transaction or disposing of that customer's securities or funds. Written form alone is not enough. A written complaint is that grievance in writing.
Operations personnel evaluate whether a customer communication meets the complaint definition. A separate lesson explains the firm's methods of escalation.
Does the Customer Concern Meet the Complaint Definition?
- For written-complaint recordkeeping, a customer complaint is a grievance from a customer or an authorized representative.
- The grievance must involve the activities of the member or an associated person.
- It must connect to soliciting or executing a transaction or disposing of that customer's securities or funds.
What Is a Written Customer Complaint?
- A written customer complaint is a qualifying grievance made in written form.
Exam Tip: Gotchas
- A complaint and a potential red flag are different classifications. A qualifying complaint does not become a potential red flag merely because the firm escalates it.
- Written form alone does not create a written customer complaint. The communication must also meet the grievance, source, and covered-activity conditions.
What Should You Check on Exam Day?
- Identify a grievance from the customer or an authorized representative.
- Confirm the required connection to the member's or associated person's covered activities.