What should a registered representative do upon receiving a written complaint from a customer?

What should a registered representative do upon receiving a written complaint from a customer?

• A. Ignore the complaint
• B. The RR should forward the complaint to her principal
• C. Respond directly to the customer
• D. Ask the customer to call back

Answer: (B)

When a registered representative receives a written complaint from a customer, the appropriate action is to forward the complaint to her principal. This response is crucial for several reasons. Firstly, forwarding the complaint ensures that it is documented and handled according to the firm’s procedures, which often involves escalation to a supervisory or compliance team. This step is important in maintaining transparency and ensuring that proper protocols are followed in addressing customer grievances. Secondly, the principal, or the supervisor, is typically equipped to assess the situation thoroughly and respond appropriately. They often have more authority and resources to investigate the complaint effectively, which can lead to a resolution that aligns with regulatory standards and company policies. Finally, handling complaints correctly is essential to uphold customer trust and company integrity. Ignoring a complaint can exacerbate the situation and damage the firm's reputation, while responding directly without proper authority may lead to inadequate handling of the matter. Thus, forwarding the complaint to a principal demonstrates adherence to regulatory requirements and best practices in customer service.

When a registered representative receives a written complaint from a customer, the appropriate action is to forward the complaint to her principal. This response is crucial for several reasons.

Firstly, forwarding the complaint ensures that it is documented and handled according to the firm’s procedures, which often involves escalation to a supervisory or compliance team. This step is important in maintaining transparency and ensuring that proper protocols are followed in addressing customer grievances.

Secondly, the principal, or the supervisor, is typically equipped to assess the situation thoroughly and respond appropriately. They often have more authority and resources to investigate the complaint effectively, which can lead to a resolution that aligns with regulatory standards and company policies.

Finally, handling complaints correctly is essential to uphold customer trust and company integrity. Ignoring a complaint can exacerbate the situation and damage the firm's reputation, while responding directly without proper authority may lead to inadequate handling of the matter.

Thus, forwarding the complaint to a principal demonstrates adherence to regulatory requirements and best practices in customer service.