IOSCO Suggests Best Practices For Handling Customer Complaints

The Board of IOSCO issued nine best practices for handling customer complaints, with a focus on retail investors.

In a report called Complaint Handling and Redress System for Retail Investors, IOSCO suggested the following to financial service providers:

• establish a system for handling retail investor complaints that (i) provides notice to investors about how their complaints will be handled, (ii) timely processes investor complaints and (iii) informs investors of alternative dispute resolution ("ADR") mechanisms;
• inform retail investors through multiple media about the complaint handling system in accessible language;
• provide multiple channels to submit complaints;
• ensure adequate resources, well-trained staff and the establishment of sound delegation practices with regard to the resolution of routine complaints and the escalation of non-routine complaints;