FINRA Securities Industry Essentials Exam (SIE) SIE Question # 23 Topic 3 Discussion
SIE Exam Topic 3 Question 23 Discussion:
Question #: 23
Topic #: 3
Under which of the following circumstances is a member firm required to report a customer interaction as a complaint?
A.
The customer calls the registered representative to express concern over recent trading activity in the account.
B.
The customer emails the registered representative to inform him that the account profile information is incorrect.
C.
The customer emails the registered representative stating that the customer was unable to place an order because the customer could not reach the representative and lost the opportunity to sell at the high of the week.
D.
The customer’s son communicates with the registered representative’s firm via social media that his father did not understand the options-writing activity on his long-held, low-basis stock positions.
A reportable customer complaint generally involves a written grievance by a customer alleging misconduct, failure, error, or improper activity by the firm or an associated person. Choice C is correct because the customer sent an email, which is a written communication, alleging that the representative’s unavailability caused a lost trading opportunity. That is a written grievance involving the firm’s service or an associated person’s conduct. Choice A is not the best answer because it is an oral expression of concern, not a written complaint. Choice B is a written communication, but it merely states that account profile information is incorrect; without an allegation of misconduct or grievance, it is more administrative than complaint-based. Choice D involves a communication from the customer’s son rather than the customer, and the facts do not establish that the son is authorized to act on the customer’s behalf. The SIE outline includes customer complaints, written customer complaints, books and records, and reportable events under employee conduct and prohibited activities. This question tests the written-grievance threshold used in recognizing complaints. Reference: Section 4.2.1 Employee Conduct; FINRA Rule 4513 Written Customer Complaints; Section 3.2.4 Books and Records.
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