FINRA’s New Q&A Guidance on Reporting Customer Complaint Information

Under FINRA Rule 4530 that became effective on July 1, 2011 governing reporting requirements for customer complaints, FINRA issued Regulatory Notice 11-10 reminding member firms of the requirement that they electronically report specified events and quarterly customer complaint information.

Member firm are also required to file with FINRA copies of certain criminal actions, civil complaints and arbitration claims. The Notice also provided guidance on automated reporting under the new rule. To assist member firms with implementation, in new Notice 11-32, FINRA has provided questions and answers regarding the application of the new rule. FINRA has said it will use the information for regulatory purposes to identify and initiate investigations of member firms, offices and associated persons that it believes might pose a risk. View Notice.

Author: Dexter Johnson

The author is a an attorney who for the past 14 years has concentrated his practice in representing, successfully, investment advisers, broker-dealers, corporations and individuals who are subject to SEC, FINRA, State or other regulations and who may be the subject of regulatory examination, review or investigation. He formerly worked at the SEC. His regulatory and litigation experience has encompassed virtually every type of securities issue in the industry. He has also negotiated favorable outcomes in many of these matters for his clients.