Customer Complaints
Chapters in this video
- 0:00 The rollercoaster text exam trap: what counts as a written complaint
- 1:28 Four-year recordkeeping for every written grievance
- 2:22 Why merit does not matter and the $5,000 reporting threshold
- 3:46 Arbitration vs. mediation: binding and voluntary dispute resolution
- 5:05 Why arbitration agreements never block regulatory complaints
- 5:45 Rapid-fire exam recap
What this video covers
- What constitutes a written complaint under FINRA rules: emails, texts, and any written communication expressing a grievance, regardless of the device it arrives on
- The minimum recordkeeping period for written complaint records and why a text to a representative's personal cell phone still counts
- The $5,000 damages threshold that triggers mandatory Form U4 and U5 disclosure, and why this applies even to frivolous complaints
- Why merit does not matter when determining whether a complaint must be reported to regulators
- The distinction between arbitration (binding, final decision by an arbitrator or panel) and mediation (voluntary, non-binding process with a negotiator)
- Why pre-dispute arbitration agreements cannot strip customers of their right to file complaints with FINRA, the Securities and Exchange Commission (SEC), or state regulators
- How firms must inform customers about FINRA dispute resolution options and what regulatory reporting obligations follow complaint records
Read the full lesson, free
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