Series 7 Exam Question 214: Answer and Explanation

Question: 214

Declan has written a letter of complaint regarding his recent purchase of municipal bonds to his broker-dealer. Upon receipt of the complaint, the broker-dealer must first

• A. immediately repurchase the securities at a price at or slightly above Declan's purchase price
• B. guarantee to make the customer whole
• C. return any markup or commission charged
• D. accept the complaint and write down any action taken

Correct Answer: D

Explanation:

D. After receiving Declan's written complaint, the municipal securities broker-dealer must accept the complaint and write down any action taken to resolve the complaint. All broker-dealers should keep a complaint file for each customer and keep accurate records of any communications or actions taken regarding a complaint.