NISM Certifications · NISM-Series-X-A: Investment Adviser (Level 1) · Grievance Redress Mechanism
Which of the following is a recommended feature of an investment adviser's internal grievance redressal arrangement?
An adviser should have a designated contact person and a clearly disclosed process for lodging complaints. Charging a fee, limiting channels or quickly deleting records is inconsistent with investor protection and record keeping requirements.
- AA designated point of contact and publicly disclosed process for lodging complaintsCorrect
- BAccepting complaints only by personal visit
- CCharging a fee to register a complaint
- DDeleting closed complaint records after one week
Explanation
A good arrangement discloses how and to whom clients may complain, has a responsible person, and keeps records. Charging fees, restricting channels or destroying records conflicts with investor protection requirements.
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