NISM Certifications · NISM-Series-X-A: Investment Adviser (Level 1) · Grievance Redress Mechanism
Which action by an investment adviser best supports an effective grievance redress mechanism for clients?
An adviser should clearly disclose grievance contact details and the escalation process to clients, typically in the client agreement, so that complaints are easy to raise and are handled transparently and promptly.
- ADisclosing the grievance contact details and escalation process to clients in the agreementCorrect
- BDiscouraging clients from using SCORES
- CResolving complaints only when the client threatens legal action
- DCharging a fee for registering a complaint
Explanation
Advisers should make the grievance process transparent, including contact details and escalation options. Discouraging SCORES, delaying, or charging for complaints is contrary to investor protection norms.
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