Customer Complaints
A WRITTEN grievance from a customer (letters, email, electronic messages) alleging mishandling; firms must keep complaint records, report them quarterly to FINRA, and certain serious allegations require prompt reporting and Form U4 disclosure.
Exam items hinge on the “written” trigger: a stem describing an angry phone call asks whether it’s a reportable complaint — the answer is no, only a written grievance counts (letters, email, text, or other electronic messages; an oral gripe falls outside Rule 4513). Watch the rep’s duty: the right move is always forward it to a principal, never handle it solo. The classic trap answer is a rep who settles privately or pays the customer off without the firm’s knowledge — that itself violates Rule 2010, and the same logic applies to falsifying records to bury unauthorized trading.
Don’t confuse the quarterly Rule 4530(d) statistical summary of written complaints with the prompt reporting (within 30 calendar days) under Rule 4530(a) that serious matters like theft, forgery, or misappropriation trigger. Also separate this from related conduct rules: guaranteeing against loss and improper profit-sharing (Rule 2150) generate complaints but are flat prohibitions, while agency-vs-principal issues turn on capacity disclosure, not complaint mechanics. Memory hook: “if it isn’t written, it isn’t a complaint” — and one you can’t make disappear by quietly paying it off.
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