Ch 28: Investment Disputes & Customer Complaints

About This Chapter

This chapter will help you review much needed skills regarding investment disputes and customer complaints. From understanding complaints in the securities industry to rules for erroneous reports, this chapter will give you a thorough review through brief, engaging lessons.

Investment Disputes and Customer Complaints - Chapter Summary

As you go through the brief lessons contained in this chapter you will get a comprehensive review of information regarding investment disputes and customer complaints. Some of the material you will review will include formal resolution methods in the securities industry, investigations and sanctions in the securities industry, and reporting requirements. Upon completion of this chapter, you should be able to:

  • Know how to approach customer complaints in the securities industry
  • Understand the investigations and penalties of security law violations
  • Apply formal techniques for resolution in the securities industry
  • Utilize the arbitration procedure for customer disputes according to the FINRA Rule 12000 Series
  • Employ the Code of Mediation procedure according to the FINRA Rule 14000 Series
  • Use the Uniform Application for Securities Industry Registration or Transfer

Through use of the resources in this chapter you will have a convenient, flexible way to review. You can utilize a variety of devices to study on your own schedule and at your own pace. You can study the lessons in any order and go back to topics of interest. If you have further questions, our experts are available to assist when needed.

12 Lessons in Chapter 28: Investment Disputes & Customer Complaints
Test your knowledge with a 30-question chapter practice test
Errors, Cancels & Rebills in the Securities Industry

1. Errors, Cancels & Rebills in the Securities Industry

This lesson identifies the different types of errors that may occur in securities trading and explains why they happen. It also explains the process for correcting these errors and describes the required notifications and reporting.

Addressing Customer Complaints in the Securities Industry

2. Addressing Customer Complaints in the Securities Industry

In this lesson, we will review FINRA requirements for members when addressing customer complaints. We will also review disciplinary actions members can face if this rule is violated.

FINRA Rule 4530 Customer Complaints: Process & Reports

3. FINRA Rule 4530 Customer Complaints: Process & Reports

FINRA Rule 4530 requires reporting of written customer complaints. But how is this done? This lesson will look at the process and reports for Rule 4530.

Investigations & Sanctions for Securities Law Violations

4. Investigations & Sanctions for Securities Law Violations

This lesson discusses FINRA Rule 8000 Series, which defines investigative procedures and sanctions for members violating federal securities laws. These procedural rules can be placed into three sections.

Formal Resolution Methods in the Securities Industry

5. Formal Resolution Methods in the Securities Industry

Disputes between clients and their financial advisers can be divisive and stressful. A formal resolution process is an imperative. In this lesson, we'll explore the various methods of dispute resolution used in the brokerage industry.

FINRA Rule 12000 Series: Arbitration Procedure for Customer Disputes

6. FINRA Rule 12000 Series: Arbitration Procedure for Customer Disputes

The Financial Industry Regulatory Authority oversees the adjudication of claims by customers against their investment firm. Rule 12000 discusses the rules and procedures for filing those claims and processing them through arbitration.

FINRA Rule 13000 Series: Arbitration Procedure for Industry Disputes

7. FINRA Rule 13000 Series: Arbitration Procedure for Industry Disputes

Investment firms who are members of the Financial Industry Regulatory Authority (FINRA) often have disputes with each other. FINRA Rule 13000 provides rules and regulations requiring members to arbitrate disputes through FINRA.

FINRA Rule 14000 Series: Code of Mediation Procedure

8. FINRA Rule 14000 Series: Code of Mediation Procedure

The Financial Industry Regulatory Authority (FINRA) passes rules on how disputes in the investment industry are to be handled. FINRA Rule 14000 details the rules for mediating claims between two parties.

FINRA Rule 4530 & Other Reporting Requirements

9. FINRA Rule 4530 & Other Reporting Requirements

What types of activities do financial professionals need to report? In this lesson, we'll examine reporting requirements for certain activities, including those covered by FINRA Rules 4530 and 4580.

FINRA Rules 11892 & 11893: Clearly Erroneous Transactions

10. FINRA Rules 11892 & 11893: Clearly Erroneous Transactions

This lesson explains how FINRA defines a clearly erroneous error and the detailed pricing points for both exchange-traded and OTC-trade securities. Examples are included to further add to understanding of these definitions.

CBOE Rules for Erroneous Reports & Customer Complaints

11. CBOE Rules for Erroneous Reports & Customer Complaints

This lesson briefly describes options contracts and the primary exchange platform used for options trading, the CBOE. We then explore two rules related to reporting errors, price obligations, and customer complaints.

Uniform Application for Securities Industry Registration or Transfer

12. Uniform Application for Securities Industry Registration or Transfer

This lesson provides an overview of the registration process for licensed security employees. Aside from the initial registration, we also discuss the ongoing training requirements and what happens to your license if there is a lapse in employment.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
Not Taken
Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
Not Taken

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