About This Chapter
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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Other chapters within the Series 7 Exam: Study Guide & Practice course
- Advertising & Public Communication in the Securities Industry
- The New Issues Market
- New Issue Regulations in the Securities Industry
- Brokerage Account Types & Restrictions
- Retirement Plans & Tax-Advantaged Accounts
- Handling Customer Investment Information & Discretionary Accounts
- Obtaining Supervisory Approvals for Investment Accounts
- Analyzing Customer Investment Profiles
- Analyzing Customer Financial Statements
- Understanding Equity Securities
- Tax Treatment of Equity Securities Transactions
- Packaged Investment Products
- Variable Life Insurance & Annuities
- Real Estate Investment Trusts
- Direct Participation Programs
- Understanding Options in Investing
- Debt Securities
- Investing in Corporate Bonds
- Municipal Securities
- Municipal Securities Analysis & Regulations
- Registered Hedge Funds
- Asset-Backed Securities
- U.S. Government Agency Securities
- Investment Product Disclosures
- Customer Updates & Record Retention
- Customer Transactions & Confirmations
- Transactional Delivery Obligations & Settlement Procedures
- Addressing Margin Issues