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

Which practice by a registered investment adviser best supports an effective grievance redress mechanism?

An adviser best supports grievance redress by disclosing the compliance officer's name and contact details and the complaint procedure to clients, and by keeping written records of complaints. Discouraging SCORES, avoiding records or charging for complaint handling contradicts investor protection norms.

  1. ADisclosing the name and contact details of the compliance officer and complaint procedure to clientsCorrect
  2. BHandling complaints only verbally without records
  3. CDiscouraging clients from using SCORES
  4. DResolving complaints only after the client pays a fee

Explanation

Advisers are expected to have a documented grievance process, disclose contact details of the compliance or grievance officer, and keep records of complaints and their resolution. Verbal-only handling, discouraging use of SCORES and charging for complaint handling all undermine investor protection.

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