Chapter 3: General Supervision - C. Customer Complaints and Office Registry
Customer ComplaintsAll written complaints received from a customer or from an individual acting on behalf of the customer must be reported promptly to the principal of the firm. The firm is required to:
- Maintain a copy of the complaint at a supervising office of supervisory jurisdiction
- Electronically report all complaints to FINRA within 15 days of the end of each calendar quarter. If no complaints were received, no report is due
- Report complaints within 10 days to FINRA, if the complaint alleges misappropriation of funds or securities or forgery
A principal is required to review all written customer complaints but there is no required time frame to respond or take action.
Investor InformationAll broker dealers that carry customer accounts must send its customer’s information detailing FINRA’s public disclosure program at least once per calendar year. The information must contain the program’s 800 number, FINRA’s website and a statement that an investor brochure includes the same information and is available.
Member OfficesAs a member’s business grows, they will often wish to open new offices. The classification of the additional offices depends on the type of activity that is conducted. There are three types of offices that a member may open. They are:
- An office of supervisory jurisdiction
- A branch office
- A satellite office
Office of Supervisory JurisdictionA member firm must inform FINRA which offices it has identified as being an office of supervisory jurisdiction, or an OSJ. An OSJ is any office that conducts one or more of the following activities at that location:
- Has custody of customer funds or securities
- Has final approval for advertising or sales literature
- Has final approval of customer accounts
- Reviews and approves customer orders
- Executes orders or makes markets in securities
- Forms or structures offerings
- Supervises employees at other branch offices
Note: A copy of the firm’s policy and procedures manual as well as a copy of FINRA manual must be kept in each OSJ. The FINRA manual must be made available to a customer upon request.