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The Board of IOSCO issued nine best practices for handling customer complaints, with a focus on retail investors.
In a report called Complaint Handling and Redress System for Retail Investors, IOSCO suggested the following to financial service providers:
- establish a system for handling retail investor complaints that (i) provides notice to investors about how their complaints will be handled, (ii) timely processes investor complaints and (iii) informs investors of alternative dispute resolution ("ADR") mechanisms;
- inform retail investors through multiple media about the complaint handling system in accessible language;
- provide multiple channels to submit complaints;
- ensure adequate resources, well-trained staff and the establishment of sound delegation practices with regard to the resolution of routine complaints and the escalation of non-routine complaints;
- offer a "wide range" of resolutions to complaints (e.g., apology, refund, changing contract) as well as "creative" resolutions;
- assist investors to identify fraud through enhanced investor education initiatives;
- utilize investor complaints as data for supervisory or regulatory purposes;
- assess an investor's satisfaction with the complaint handling process to find "kernels of insight" for improvement; and
- increase accessibility by simplifying ADR and its instructions, publishing ADR statistics and suspending individuals that do not pay awards.
Primary Sources
- IOSCO Press Release: IOSCO issues sound practices to assist members in enhancing complaint handling and protect retail investors
- IOSCO Report: Complaint Handling and Redress System for Retail Investors
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