GEN 7. GEN 7. COMPLAINTS HANDLING AND DISPUTE RESOLUTION
GEN 7.1 GEN 7.1 Application
This Chapter applies to every Authorised Person, other than a Representative Office and a Credit Rating Agency, carrying on a Regulated Activity in or from the ADGM as follows:(a) Rule 7.2 applies to an Authorised Person carrying on a Regulated Activity with or for a Retail Client; and(b) Rule 7.3 applies to an Authorised Person carrying on a Regulated Activity with or for a Professional Client.
GEN 7.2 GEN 7.2 Complaints handling procedures for Retail Clients
Written Complaints handling procedures
An Authorised Person must have adequate policies and procedures in place for the investigation and resolution of Complaints made against it by Retail Clients, and the manner of redress (including compensation for acts or omissions of the Authorised Person).
GEN 7.2.2 GEN 7.2.2
The policies and procedures for handling Complaints must be in writing and provide that Complaints are handled fairly, consistently and promptly.
Guidance1. In establishing adequate Complaints handling policies and procedures, an Authorised Person should have regard to:a. the nature, scale and complexity of its business; andb. its size and organisational structure.2. An Authorised Person should consider its obligations under Rule 3.3.19 and accompanying guidance.3. The Regulator considers 60 days from the receipt of a Complaint to be an appropriate period in which an Authorised Person should be able to resolve most Complaints.
On receipt of a Complaint, an Authorised Person must:(a) acknowledge the Complaint promptly in writing;(b) provide the complainant with:(i) the contact details of any individual responsible for handling the Complaint;(ii) key particulars of the Authorised Person's Complaints handling procedures; and(iii) a statement that a copy of the procedures is available free of charge upon request in accordance with Rule 7.2.11; and(c) consider the subject matter of the Complaint.
GEN 7.2.4 GEN 7.2.4
Where appropriate, an Authorised Person must update the complainant on the progress of the handling of the Complaint.
Guidance1. The Regulator considers seven days to be an adequate period in which an Authorised Person should be able to acknowledge most Complaints.2. The Regulator expects an update to be provided to the complainant in circumstances where the resolution of the Complaint is taking longer than 30 days.
Resolution of Complaints
Upon conclusion of an investigation of a Complaint, an Authorised Person must promptly:(a) advise the complainant in writing of the resolution of the Complaint;(b) provide the complainant with clear terms of redress, if applicable; and(c) comply with the terms of redress if accepted by the complainant.
GEN 7.2.6 GEN 7.2.6
If the complainant is not satisfied with the terms of redress offered by the Authorised Person, the Authorised Person must inform the complainant of other avenues, if any, for resolution of the Complaint and provide him with the appropriate contact details upon request.
Other avenues for resolution of a Complaint may include an external dispute resolution scheme, arbitration or the Regulatory Committee, Appeals Panel or Court in the ADGM.
Employees handling Complaints
Where appropriate, taking into account the nature, scale and complexity of an Authorised Person's business, an Authorised Person must ensure that any individual handling the Complaint is not or was not involved in the conduct of the Regulated Activity about which the Complaint has been made, and is able to handle the Complaint in a fair and impartial manner.
An Authorised Person must ensure that any individual responsible for handling the Complaint has sufficient authority to resolve the Complaint or has access to individuals with the necessary authority.
Complaints involving other Authorised Persons or Recognised Bodies
If an Authorised Person considers that another Authorised Person or a Recognised Body is entirely or partly responsible for the subject matter of a Complaint, it may refer the Complaint, or the relevant part of it, to the other Authorised Person or Recognised Bodies in accordance with Rule 7.2.10 or under MIR.
To refer a Complaint, an Authorised Person must:(a) inform the complainant promptly and in writing that it would like to refer the Complaint, either entirely or in part, to another Authorised Person or Recognised Body, and obtain the written consent of the complainant to do so;(b) if the complainant consents to the referral of the Complaint, refer the Complaint to the other Authorised Person or Recognised Body promptly and in writing;(c) inform the complainant promptly and in writing that the Complaint has been referred and include adequate contact details of any individual at the other Authorised Person or Recognised Body responsible for handling the Complaint; and(d) continue to deal with any part of the Complaint not referred to the other Authorised Person or Recognised Body, in accordance with this Chapter.
Retail Client awareness
An Authorised Person must ensure that a copy of its Complaints handling procedures is available free of charge to any Retail Client upon request.
Retention of records
An Authorised Person must maintain a record of all Complaints made against it for a minimum period of six years from the date of receipt of a Complaint.
The record maintained under Rule 7.2.12 must contain the name of the complainant, the substance of the Complaint, a record of the Authorised Person's response, and any other relevant correspondence or records, and the action taken by the Authorised Person to resolve each Complaint.
Systems and controls
GEN 7.2.14 GEN 7.2.14
In accordance with Rules 3.3.4 and 3.3.5, an Authorised Person must put in place adequate systems and controls in order for it to identify and remedy any recurring or systemic problems identified from Complaints.
An Authorised Person should consider whether it is required to notify the Regulator, pursuant to Rule 8.10.6, of any recurring or systemic problems identified from Complaints.
GEN 7.3 GEN 7.3 Complaints recording procedures for Professional Clients
An Authorised Person must have adequate policies and procedures in place for the recording of Complaints made against it by Professional Clients.
GEN 7.3.2 GEN 7.3.2
An Authorised Person must maintain a record of any Complaint made against it for a minimum period of six years from the date of receipt of the Complaint.
Depending on the nature, scale and complexity of its business, it may be appropriate for an Authorised Person to have in place a suitable Complaints handling procedure for Professional Clients in order to ensure that such Complaints are properly handled and remedial action is taken promptly. Such Complaints handling procedures would be expected to include provisions about the independence of staff investigating the Complaint and bringing the matter to the attention of senior management.