The Investment Industry Regulatory Organization of Canada is proposing amendments to its complaint-handling rules that seek to establish a more effective framework for the client complaint process.

The proposed new rule sets out specific standards and timelines that firms must follow in acknowledging, investigating and responding to client complaints that allege misconduct relating to the handling of client accounts. The rule also requires the dealers to adequately inform the client of all the subsequent options available to them should the client be dissatisfied with the final response from the firm.

In addition to the new rule regarding complaint handling, the proposed amendments will repeal the current complaint handling requirements and replace it with a general requirement that dealers establish policies and procedures to deal effectively with all client complaints and respond to all written complaints.

The initiative has its roots in the Investor Town Hall hosted by the Ontario Securities Commission back in 2005, which identified complaint handling as a key investor concern, both in terms of process transparency and timeliness.

The proposed amendments were developed in consultation with IIROC advisory committees and with public input. Comments are sought on the proposed amendments by March 16.

IE