A notice describing how firms should be handling client complaints was issued by the Investment Dealers Association of Canada on Wednesday, which also promises rule changes to improve complaint handling.

The notice explains that the IDA committed to issue the notice setting out its expectations, and to revise its complaint handling rules to impose complaint handling timelines and to further clarify the standards for handling client complaints, as a result of the Investor Town Hall held by the Ontario Securities Commission back in 2005. Following the Town Hall, the IDA, the Mutual Fund Dealers Association of Canada, and the Ombudsman for Banking Services and Investments struck a joint committee to address priority issues. One of the joint committee’s priority issues is the handling of client complaints.

The notice outlines some of the IDA’s current rules, expectations and industry best practices on how its members should handle client complaints. It points out that there are also other IDA rules on complaint handling such as reporting and recordkeeping requirements that are not mentioned in this notice, so the notice should be read in conjunction with all other IDA requirements.

The IDA adds that this notice will be followed by proposed revisions to the complaint handling rules to provide timelines, a possible requirement to designate one or more individuals to oversee the member’s complaint handling process and further clarification on the IDA’s complaint handling standards. The IDA expects that any proposed rule changes will be submitted to the Canadian Securities Administrators for approval in 2007.