Complaints and Disputes_A

Question 1

What are the criteria for a client complaint to be handled by a member’s internal complaints procedures?

Answer 1

Any client complaint in relation to the provision of regulated services, in which the client alleges that he has suffered,
or is likely to suffer, financial prejudice as a result of the member –
1. contravening or failing to comply with any instruction given by the client, or any agreement or mandate entered
into with the client;
2. contravening or failing to comply with the rules and the directives;
3. acting dishonestly, negligently or recklessly; or
4. treating the client unfairly

Question 2

What must a member’s internal complaint handling procedures provide for?

Answer 2

1. The receipt of oral or written complaints.
2. The appropriate investigation of complaints.
3. An appropriate decision-making process in relation to the response to a client complaint.
4. Notification of the decision to the client.
5. The recording of complaints.

Question 3

What must a member’s internal complaint handling procedures be designed to ensure?

Answer 3

1. All complaints are handled fairly, effectively and promptly.
2. Recurring or systemic problems are identified, investigated and remedied.
3. The number of unresolved complaints referred to the JSE are minimised.
4. Complaints are investigated by an employee of sufficient competence who, where appropriate, was not directly
   involved in the matter which is the subject of a complaint.
5. The employee responsible for the resolution of complaints has the necessary authority to resolve complaints or
   has ready access to an employee who has the necessary authority.
6. Relevant employees are aware of the member’s internal complaint handling procedures and comply with them.

Question 4

Within what time must a member respond to a client complaint?

Answer 4

1. Within 4 weeks of receiving the complaint. OR
2. Within such period, provide the complainant with an appropriate explanation as to why the member is not, at
   the time, in a position to respond. AND
3. Must indicate when the member will respond.

Question 5

What must a member do in the circumstances where it decides that redress in the form of compensation is
appropriate in resolving a complaint?

Answer 5

The member must provide the complainant with fair compensation and must comply with any offer of compensation
made by it which the complainant accepts.

Question 6

What must a member do in the circumstances where it decides that redress in the form other than compensation is
appropriate in resolving a complaint?

Answer 6

The member must provide the redress as soon as practicable.

Question 7

A member must maintain a record of all client complaints.
1. What must the record of complaints include? AND
2. For how long must the records be maintained?

Answer 7

1. The records must include:
   a. The identity of the complainant;
   b. the substance of the complaints;
   c. all correspondence in relation to the complaint.
2. For a period of 5 years from date of receipt of the complaint.