Efficient complaint handling and grievance redressal mechanisms are essential for building and maintaining trust with financial consumers. To ensure this, IFSCA Official has issued a circular laying down comprehensive requirements for entities operating within the IFSC. This article highlights the key aspects of the circular and provides insights into how regulated entities can effectively comply.
Applicability and Implementation Timeline
The circular applies to all IFSCA-regulated entities, excluding specific groups such as Foreign Universities, Educational Institutions, Ancillary Service Providers, and Finance Companies engaged in aircraft or ship leasing. The guidelines are mandatory for all other entities starting from January 15, 2025.
Key Definitions
Complaint Redressal Officer (CRO): The designated person within an entity responsible for handling complaints.
Complaint Redressal Appellate Officer (CRAO): The individual who handles appeals when a consumer is dissatisfied with the CRO's decision.
Retail and Professional Consumers: Distinctions made for different levels of consumer engagement and tailored complaint handling procedures.
Complaint Handling Policy Essentials
Each regulated entity must establish a complaint handling policy approved by their Board, which should align with the organization’s size, structure, and business complexity. The policy must:
Define "complaint" clearly, excluding irrelevant issues (e.g., anonymous complaints or general suggestions).
Ensure that the CRO and CRAO details are available on the entity’s website for transparency.
Steps for Complaint Handling (Retail Consumers)
Acknowledgment of Complaints: Acceptance: Complaints must be acknowledged within 3 working days. Non-Acceptance: If the complaint is not accepted, the consumer should be informed within 5 working days, with reasons for rejection.
Resolution Timeline: Complaints should ideally be resolved within 15 to 30 days of acceptance.
Appeal Mechanism
If a consumer is dissatisfied with the resolution or rejection of their complaint, they can appeal to the CRAO. Appeals should be filed within 21 days, and the CRAO must resolve them within 30 days.
Authority’s Role in Grievance Redressal
For unresolved complaints after exhausting the entity's internal appeal process, consumers can submit their grievances to grievance-redressal@ifsca.gov.in. If the complaint is related to trading or market activities, it should first be addressed to the relevant Market Infrastructure Institution.
Maintenance and Reporting
Regulated entities must maintain records of all complaints for a minimum of six years. They must also report complaint handling data either in their annual reports or publish it on their website under a section titled “Complaint Handling and Grievance Redressal.”
Online Systems and Compliance Oversight
The adoption of online systems for complaint handling is encouraged. The Compliance Officer of each entity is responsible for ensuring that complaint resolution processes comply with IFSCA’s guidelines.
Actions for Non-Compliance
IFSCA may impose penalties for failure to comply with the complaint handling and grievance redressal requirements under the IFSCA Act, 2019.
More in Detail: International Financial Services Centres Authority #IFSCA #GrievanceRedressal #ComplaintHandling #FinancialConsumers #ConsumerTrust #RegulatedEntities #FinancialServices #ComplianceGuidelines #CRO #CRAO #ComplaintResolution #RetailConsumers #ProfessionalConsumers #CustomerSatisfaction #AppealMechanism #RegulatoryCompliance #OnlineSystems #ComplianceOfficer #ConsumerProtection #FinancialRegulations Disclaimer: This post is for informational purposes only and does not constitute professional advice. While efforts are made to ensure accuracy, we do not guarantee the completeness or reliability of the information provided. Any reliance is at your own risk. Consult professionals for specific advice.
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