New Rules Relating to Reporting Customer Complaints

The Self-Regulation and Supervisory Practices Committee of the Securities Industry Association (SIA)* provides comments to the New York Stock Exchange (NYSE) on the new interpretation of NYSE Rule 351(d) (announced in NYSE Information Memo 98-16), which requires each member and each member organization to report to the NYSE statistical information regarding customer complaints.  SIA shares concerns that the proposal, if adopted, would require the reporting of oral complaints as well.  SIA notes that the industry has worked diligently to develop procedures and processes for dealing with customer written complaints.  In addition all initiatives to date direct customers to put complaints in writing for the simple reason that it is almost impossible to review and evaluate a complaint unless that complaint has been reduced to writing by the customer.

*SIFMA is the product of a merger between the Securities Industry Association (SIA) and The Bond Market Association (TBMA) in 2006.