SIE Overview of the Regulatory Framework Question 5: Answer and Explanation

Question: 5

Which of the following constitutes a reportable customer complaint?

• A. A letter written by a customer's neighbor who overhears a conversation in which the customer is critical of service received
• B. An in-person comment by a customer saying the advice received regarding purchasing an investment was incomplete and misleading
• C. A text received from an executor of a customer's estate saying the final handling of the securities was improper
• D. A phone call by a customer saying the order was not completed as requested

Correct Answer: C

Explanation:

C: A text received from an executor of a customer's estate stating that the final handling of the securities was improper is a reportable customer complaint; it is dissatisfaction expressed in writing by a customer's authorized representative regarding activities related to final handling of that customer's securities. Choice A, although it is in writing, is not reportable because it is not by the customer's authorized representative. Choices B and D are not reportable because they are not in writing.