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NISM Certifications · NISM-Series-X-A: Investment Adviser (Level 1) · Grievance Redress Mechanism

An investment adviser receives a written complaint from a client, Mr. Sanjay Gupta, alleging that a recommendation was made without a risk profile assessment. Which action is most consistent with the adviser's grievance redress obligations?

The adviser should acknowledge the complaint, investigate it using the maintained records, reply within the prescribed time and keep records of the complaint and its resolution. Ignoring it, pressuring withdrawal or deleting records breaches regulatory and ethical obligations and may invite action.

  1. AAcknowledge the complaint, investigate with records, respond within the prescribed time, and maintain the complaint recordsCorrect
  2. BIgnore it until the client approaches SEBI
  3. CAsk the client to withdraw it in exchange for a fee waiver
  4. DDelete the client's risk profile records to avoid disputes

Explanation

Advisers are expected to have a grievance redress process: acknowledge, examine using records, reply in time and keep records. Pressuring withdrawal or deleting records violates regulatory and ethical duties, and ignoring the complaint worsens the exposure.

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