• DRA-1 DRA-1 Internal Dispute Resolution and Complaints

    • DRA-1.1 DRA-1.1 Internal Dispute Resolution and Redress of Complaints

      • DRA-1.1.1

        All CMSPs must have appropriate internal dispute resolution procedures and systems for effective handling of complaints made by clients and investors (IDR procedures and systems).

        July 2010

      • Internal Dispute Resolution Requirements

        • DRA-1.1.2

          All CMSPs must have in place internal dispute resolution systems and procedures that are documented appropriately; and the clients and users of the services of the CMSPs are informed about its availability.

          July 2010

      • Documenting Internal Dispute Resolution Procedures

        • DRA-1.1.3

          In order to make internal dispute resolution procedures as transparent and accessible as possible and to assist with staff training and awareness, all CMSPs must document their internal dispute resolution procedures. This includes setting out in writing:

          (a) The procedures and policies for:
          (i) Receiving complaints;
          (ii) Investigating complaints;
          (iii) Responding to complaints within appropriate time limits;
          (iv) Referring unresolved complaints to arbitration or other appropriate external dispute resolution mechanisms;
          (v) Recording information about complaints;
          (vi) Identifying and recording systemic issues;
          (b) The types of remedies available for resolving complaints; and
          (c) Internal structures and reporting requirements for complaint handling. CMSPs should provide a copy of the procedures to all relevant staff, so that they may be able to inform clients and users. A simple and easy-to-use guide to the procedures should also be made available to all clients and users of the services of CMSPs, either on request, or when they want to make a complaint.
          July 2010

      • Guiding Principles

        • DRA-1.1.4

          Adherence to the following guiding principles is required for effective handling of complaints:

          (a) Visibility:
          (i) How and where to complain should be well publicized to customers and other interests parties;
          (b) Accessibility:
          (i) A complaints handling process should be easily accessible to all clients;
          (ii) Process information should be readily accessible;
          (iii) Should include flexibility in the method of making complaints;
          (iv) Low cost telephone access should be available where possible;
          (v) Support for customers with special needs should be provided, such as interpreters;
          (vi) Information and assistance should be available on details of making and resolving a complaint;
          (vii) Supporting information should be easy to understand and use;
          (viii) Information and assistance in making a complaint should be made available;
          (c) Responsiveness:
          (i) Receipt of complaints should be acknowledged immediately;
          (ii) Complaints should be addressed promptly in accordance with its urgency;
          (iii) Customers should be treated with courtesy;
          (iv) Customers should be kept informed of the progress of their complaint;
          (d) Objectivity:
          1. Complaints should be addressed in an equitable objective and unbiased manner;
          2. General principles for objectivity in the complaints handling process include:
          (a) Openness:
          (i) Process should be clear and well publicized so that both staff and clients can understand;
          (b) Impartiality:
          (i) Avoiding bias to a customer, personnel or the CMSP;
          (ii) Protect the person the complaint is made against from bias;
          (iii) Emphasis should be placed on resolution not blame;
          (iv) Investigation should be carried out independently of the person complained about;
          (c) Accessibility:
          (i) Should allow customer access to the process at any reasonable point in time;
          (ii) A joint response should be made when the complaint affects different supply chain participants;
          (d) Completeness:
          (i) Finding relevant facts, talking to both sides, establishing common ground and verifying explanations should occur wherever possible;
          (e) Equitability:
          (i) Give equal treatment to all people;
          (f) Sensitivity:
          (i) Each complaint treated on its merits and paying due care to individual circumstances;
          (g) Objectivity for personnel — complaints handling procedures should ensure those complained about are treated fairly which implies:
          (i) Informing them immediately and completely on complaints about performance;
          (ii) Giving them an opportunity to explain and providing appropriate support;
          (iii) Keeping them informed of the progress and result of the complaint investigation;
          (iv) Full details of the complaint are given to those the complaint is made against prior to interview;
          (v) Personnel should be assured they are supported by the process and should be encouraged to learn from the experience and develop a better understanding of the complaints process;
          (h) Separating complaints handling procedures from disciplinary procedures:
          (i) Complaints process should be separate to disciplinary process;
          (i) Confidentiality:
          (i) In addition to customer confidentiality the process should ensure confidentiality for staff who have a complaint made against them and the details should only be known to those directly concerned;
          (ii) Personal information should only be available for the purposes of addressing the complaints within the CMSP;
          (iii) Should be actively protected for the discloser unless the customer consents otherwise;
          (iv) Protect the customer and customer's identity as far as is reasonable to avoid deterring complaints due to fear of inconvenience or discrimination;
          (j) Objectivity monitoring:
          (i) CMSPs should monitor responses to customers to ensure objectivity which could include random monitoring of resolved complaints;
          (k) Charges:
          (i) Process should be free of charge to customers;
          (l) Customer Focused Approach:
          (i) CMSPs should have a customer focused approach;
          (ii) Should be open to feedback including complaints;
          (iii) Should show commitment to resolving complaints;
          (m) Accountability:
          (i) CMSPs should ensure accountability for reporting on actions and decisions with respect to complaints handling is clearly established;
          (n) Continual improvement:
          (i) Continual improvement of the complaints handling process and the quality of products should be a permanent objective of the CMSP.
          July 2010

      • Internal Complaint Handling Procedures

        • DRA-1.1.5

          A CMSPs internal complaint handling procedures must provide for:

          (a) The receipt of written complaints;
          (b)The appropriate investigation of complaints;
          (c) An appropriate decision-making process in relation to the response to a client complaint;
          (d) Notification of the decision to the client; and
          (e) The recording of complaints.
          July 2010

        • DRA-1.1.6

          A CMSP's internal complaint handling procedures must be designed to ensure that:

          (a) All complaints are handled fairly, effectively and promptly;
          (b) Recurring or systemic problems are identified, investigated and remedied;
          (c) The number of unresolved complaints referred to the SRO and/or the CBB are minimized;
          (d) Complaints are investigated by an employee of sufficient competence who, where appropriate, was not directly involved in the matter which is the subject of a complaint;
          (e) The employee responsible for the resolution of complaints has the necessary authority to resolve complaints or has ready access to an employee who has the necessary authority; and
          (f) Relevant employees are aware of the CMSP's internal complaint handling procedures and comply with them.
          July 2010

      • Timely Response to Complaints

        • DRA-1.1.7

          A CMSP must respond to a client complaint within 4 weeks of receiving the complaint, or provide the complainant with an appropriate explanation as to why the CMSP is not, at that time, in a position to respond and must indicate by when the CMSP will respond.

          If a CMSP fails to respond to a client complaint as above, the CMSP will be liable for appropriate enforcement actions as per the Market Surveillance, Investigation and Enforcement (MIE) Module, including financial penalties.

          July 2010

      • Redress

        • DRA-1.1.8

          Where a CMSP decides that redress in the form of compensation is appropriate in resolving a complaint, the CMSP must provide the complainant with fair compensation and must comply with any offer of compensation made by it which the complainant accepts.

          July 2010

        • DRA-1.1.9

          Where a CMSP decides that redress in a form other than compensation is appropriate in resolving a complaint, it must provide the redress as soon as practicable.

          July 2010

      • Recording of Complaints

        • DRA-1.1.10

          A CMSP must maintain a record of all client complaints. The record of each complaint must include:

          (a) The identity of the complainant;
          (b) The substance of the complaint;
          (c) The status of the complaint, including whether resolved or not, and whether redress was provided, and whether referred to arbitration; and
          (d) All correspondence in relation to the complaint. Such records must be retained by the CMSP for a period of 10 years from the date of receipt of the complaint.
          July 2010

      • Unresolved Client Complaints

        • DRA-1.1.11

          (a) A client complaint will be deemed to be unresolved if the complainant is not satisfied with the resolution of the complaint proposed by the CMSP; and
          (b) Where a complaint relates to a member of an SRO, the complainant may lodge an unresolved complaint, in writing, with the SRO giving full particulars of the matter concerned.
          July 2010

    • DRA-1.2 DRA-1.2 Complaint against Listed Companies and Issuers of Securities

      • DRA-1.2.1

        All listed companies and issuers of securities must have internal procedures and systems for effective handling of investor complaints and their resolution.

        July 2010

      • DRA-1.2.2

        Investor complaints against issuers may, for example, relate to:

        (a) Public/Further Offerings: Complaint regarding non-receipt of:
        (i) Allotment advice;
        (ii) Securities purchased through an Initial Public Offer;
        (iii) Refund order;
        (iv) Interest on delay redemption/refund amount;
        (v) Sales proceeds of fractional entitlement;
        (vi) Securities purchased through a rights offer.
        (b) Corporate Actions: Complaint regarding non-receipt of:
        (i) Dividend;
        (ii) Interest on Debentures, Bonds or other debt instruments;
        (iii) Securities on account of a bonus, de-merger, merger, stock split;
        (iv) Redemption amount.
        (c) Transfer of Securities: Complaint regarding non-receipt of:
        (i) Securities after dematerialization;
        (ii Securities after transfer/transmission;
        (iii) Duplicate certificate relating to securities.
        (d) Miscellaneous: Complaint regarding non-receipt of copy of the Annual report or AGM/EGM notice.
        July 2010

      • Unresolved Complaints

        • DRA-1.2.3

          (a) An investor complaint will be deemed to be unresolved if the complainant is not satisfied with the resolution of the complaint proposed by the listed company/issuer of securities; and
          (b) A complainant may lodge an unresolved complaint, in writing, with the relevant SRO as per section DRA-2.1 giving full particulars of the matter concerned.
          July 2010