Skip to content

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

Mr. Rakesh Iyer, a client of a registered investment adviser, alleges that the adviser's recommendation was unsuitable and sends a written complaint. What is the best practice for the adviser in handling the complaint?

The adviser should acknowledge the complaint promptly, record it in the complaint register, investigate fairly and send a reasoned written reply within the stipulated time. Ignoring it, buying silence with a fee waiver or replying only verbally without records breaches good conduct and regulatory expectations.

  1. AAcknowledge it promptly, record it in the complaint register, investigate and give a reasoned written response within the stipulated timeCorrect
  2. BIgnore it until the client approaches SEBI
  3. CAsk the client to withdraw it in exchange for fee waiver without recording it
  4. DVerbally reply only and keep no record

Explanation

A sound grievance mechanism requires prompt acknowledgement, documentation, fair investigation and a reasoned response within the prescribed time. Ignoring, suppressing or leaving the complaint undocumented violates good conduct and regulatory expectations.

Did you get it right without looking?

One question tells you little. A timed set on Grievance Redress Mechanism shows your real accuracy, how long you take and where you lose marks.

Practise Grievance Redress MechanismFree diagnostic mock

More Grievance Redress Mechanism questions