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

Which of the following is the most appropriate practice for an investment adviser in maintaining a grievance redress mechanism for clients?

An adviser should maintain a documented complaint register recording receipt dates, actions and resolution dates. Proper records support timely redress and regulatory inspection. Handling complaints only verbally, discouraging written complaints or passing them to family members would breach good compliance practice.

  1. AMaintaining a documented complaint register with dates of receipt and resolution for each complaintCorrect
  2. BResolving complaints verbally and keeping no records to avoid disclosure
  3. CDiscouraging clients from complaining in writing
  4. DReferring all complaints to the client's family members

Explanation

Advisers are expected to record complaints, acknowledge them, and resolve them within the prescribed timeline while keeping records for regulatory inspection. Avoiding records or discouraging written complaints defeats transparency and breaches compliance expectations.

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