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

Which of the following is a feature of a robust grievance redress mechanism that an investment adviser should follow?

A robust mechanism gives the client a clear point of contact and a defined escalation path for complaints. Charging a fee, limiting complaints to in-person visits or refusing complaints about earlier advice would obstruct redress and conflict with investor protection expectations.

  1. AProviding the client a clear point of contact and escalation path for complaintsCorrect
  2. BCharging clients a fee to register a complaint
  3. CAccepting complaints only in person on weekdays
  4. DRefusing complaints relating to past advice

Explanation

A good mechanism makes complaining easy and transparent, with a designated contact and escalation route. Charging fees, limiting channels or refusing past matters would defeat the purpose of redress.

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