The Investment Dealers Association of Canada has published for comment proposed complaint-handling rules.

The IDA’s proposed rule seeks to establish specific requirements for the client complaint handling process. It sets out specific standards and timelines to be adhered to in acknowledging, investigating and responding to client complaints that allege misconduct relating to the handling of the client’s account(s). The rule also requires the firm to adequately inform the client of all the subsequent options available to them should the client be dissatisfied with the final response from the firm.

The Mutual Fund Dealers Association of Canada has also already published proposed complaint-handling rules of its own; and, proposed registration would establish similar requirements.

The IDA indicates that it is proposing the rules, “Based on investor feedback at an Ontario Securities Commission Town Hall meeting” indicating that, “there is a clear need to improve the complaint handling process to ensure that clients are aware of the process they should follow should they have a complaint and to ensure the fair and prompt handling of complaints at member firms.”

The regulator acknowledges that there will be additional costs associated with handing out or sending out the IDA approved complaint handling process brochure at time of account opening, complaint acknowledgement and substantive response. “It is believed that the benefits associated with greater client awareness of the complaint handling process are significantly greater than these additional costs,” it says.

Comments on the proposed rule are sought within 30 days.