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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 an effective grievance redress mechanism maintained by an investment adviser?

An effective mechanism has a designated contact for complaints and keeps a record of every complaint and its resolution. Verbal-only acceptance, fee-based discrimination and destroying records undermine fairness, accountability and regulatory review, so they are not features of a sound grievance process.

  1. ADesignated contact for complaints and a record of each complaint and its resolutionCorrect
  2. BAccepting complaints only verbally
  3. CResolving complaints only for clients paying above a threshold fee
  4. DDestroying complaint records after resolution

Explanation

An effective mechanism has a designated point of contact and documented records of complaints and outcomes, enabling audit and regulatory review. Verbal-only intake, fee-based discrimination and destroying records all weaken fairness and accountability.

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