Entire Section
GEN 9 GEN 9 Complaints Handling and Dispute Resolution
GEN 9.1 GEN 9.1 Application
GEN 9.1.1
This chapter applies to every
Authorised Firm , other than aRepresentative Office and aCredit Rating Agency , carrying on aFinancial Service in or from theDIFC as follows:(a) GEN Section 9.2 applies to anAuthorised Firm carrying on aFinancial Service with or for aRetail Client ;(b) GEN Section 9.3 applies to anAuthorised Firm carrying on aFinancial Service with or for aProfessional Client ; and(c) GEN Section 9.4 sets out additional requirements that apply to an Authorised Firm carrying on the Financial Service of Providing Money Services or Arranging or Advising on Money Services.[Added] DFSA RM56/2008 (Made 1st July 2008). [VER19/07-08]
[Amended] DFSA RM68/2009 (Made 3rd January 2010). [VER24/01-10]
[Amended] DFSA RM96/2012 (Made 24th July 2012) [VER30/07-12]
[Amended] DFSA RMI266/2020 (Made 26th February 2020). [VER48/04-2020]GEN 9.2 GEN 9.2 Complaints handling procedures for Retail Clients
Written Complaints handling procedures
GEN 9.2.1
An
Authorised Firm must have adequate policies and procedures in place for the investigation and resolution ofComplaints made against it byRetail Clients , and the manner of redress (including compensation for acts or omissions of theAuthorised Firm ).[Added] DFSA RM56/2008 (Made 1st July 2008). [VER19/07-08]GEN 9.2.2 GEN 9.2.2
The policies and procedures for handling
Complaints must be in writing and provide thatComplaints are handled fairly, consistently and promptly.[Added] DFSA RM56/2008 (Made 1st July 2008). [VER19/07-08]GEN 9.2.2 Guidance
1. In establishing adequateComplaints handling policies and procedures, anAuthorised Firm should have regard to:a. the nature, scale and complexity of its business; andb. its size and organisational structure.2. In handlingComplaints , anAuthorised Firm should consider its obligations under the Data Protection Law 2007.3. AnAuthorised Firm should consider its obligations under GEN Rule 5.3.19 and accompanying guidance.4. TheDFSA considers 60 days from the receipt of aComplaint to be an appropriate period in which anAuthorised Firm should be able to resolve mostComplaints. However,Complaints related to the Provision of Money Services or Arranging or Advising on Money Services should generally be resolved within 15 business days – see GEN Rule 9.4.3.5. In accordance with COB Rule 2.1.2(5), a Member, Beneficiary or Participating Employer of an Employee Money Purchase Scheme is treated as a Retail Client of an Operator or Administrator of the Scheme. Therefore, the complaints handling procedures in this chapter relating to Retail Clients will apply to those persons.[Added] DFSA RM56/2008 (Made 1st July 2008). [VER19/07-08]
[Added] DFSA RMI260/2019 (Made 18th December 2019). [VER47/01-20]
[Added] DFSA RMI266/2020 (Made 26th February 2020). [VER48/04-20]GEN 9.2.3
On receipt of a
Complaint , anAuthorised Firm must:(a) acknowledge theComplaint promptly in writing;(b) provide the complainant with:(i) the contact details of any individual responsible for handling theComplaint ;(ii) key particulars of theAuthorised Firm's Complaints handling procedures; and(iii) a statement that a copy of the procedures is available free of charge upon request in accordance with GEN Rule 9.2.11; and(c) consider the subject matter of theComplaint .[Added] DFSA RM56/2008 (Made 1st July 2008). [VER19/07-08]GEN 9.2.4 GEN 9.2.4
Where appropriate, an
Authorised Firm must update the complainant on the progress of the handling of theComplaint .[Added] DFSA RM56/2008 (Made 1st July 2008). [VER19/07-08]GEN 9.2.4 Guidance
1. TheDFSA considers 7 days to be an adequate period in which anAuthorised Firm should be able to acknowledge mostComplaints .2. TheDFSA expects an update to be provided to the complainant in circumstances where the resolution of theComplaint is taking longer than 30 days.[Added] DFSA RM56/2008 (Made 1st July 2008). [VER19/07-08]Resolution of Complaints
GEN 9.2.5
Upon conclusion of an investigation of a
Complaint , anAuthorised Firm must promptly:(a) advise the complainant in writing of the resolution of theComplaint ;(b) provide the complainant with clear terms of redress, if applicable; and(c) comply with the terms of redress if accepted by the complainant.[Added] DFSA RM56/2008 (Made 1st July 2008). [VER19/07-08]GEN 9.2.6 GEN 9.2.6
If the complainant is not satisfied with the terms of redress offered by the
Authorised Firm , theAuthorised Firm must inform the complainant of other avenues, if any, for resolution of theComplaint and provide him with the appropriate contact details upon request.[Added] DFSA RM56/2008 (Made 1st July 2008). [VER19/07-08]GEN 9.2.6 Guidance
Other avenues for resolution of a
Complaint may include an external dispute resolution scheme, arbitration or theDIFC Court. Under GEN Rule 9.4.4 an Authorised Firm Providing Money Services or Arranging or Advising on Money Services is required to ensure that Clients have access to an independent complaints handling service.[Added] DFSA RM56/2008 (Made 1st July 2008). [VER19/07-08]
[Added] DFSA RMI266/2020 (Made 26th February 2020). [VER48/04-20]Employees handling Complaints
GEN 9.2.7
Where appropriate, taking into account the nature, scale and complexity of an
Authorised Firm's business, anAuthorised Firm must ensure that any individual handling theComplaint is not or was not involved in the conduct of theFinancial Service about which theComplaint has been made, and is able to handle theComplaint in a fair and impartial manner.[Added] DFSA RM56/2008 (Made 1st July 2008). [VER19/07-08]GEN 9.2.8
An
Authorised Firm must ensure that any individual responsible for handling theComplaint has sufficient authority to resolve theComplaint or has access to individuals with the necessary authority.[Added] DFSA RM56/2008 (Made 1st July 2008). [VER19/07-08]Complaints involving other Authorised Firms or Regulated Financial Institutions
GEN 9.2.9
If an
Authorised Firm considers that anotherAuthorised Firm or aRegulated Financial Institution is entirely or partly responsible for the subject matter of aComplaint , it may refer theComplaint , or the relevant part of it, to the otherAuthorised Firm orRegulated Financial Institution in accordance with Rule 9.2.10.[Added] DFSA RM56/2008 (Made 1st July 2008). [VER19/07-08]GEN 9.2.10 GEN 9.2.10
To refer a
Complaint , anAuthorised Firm must:(a) inform the complainant promptly and in writing that it would like to refer theComplaint , either entirely or in part, to anotherAuthorised Firm orRegulated Financial Institution , and obtain the written consent of the complainant to do so;(b) if the complainant consents to the referral of theComplaint , refer theComplaint to the otherAuthorised Firm orRegulated Financial Institution promptly and in writing;(c) inform the complainant promptly and in writing that theComplaint has been referred and include adequate contact details of any individual at the otherAuthorised Firm orRegulated Financial Institution responsible for handling theComplaint ; and(d) continue to deal with any part of theComplaint not referred to the otherAuthorised Firm orRegulated Financial Institution , in accordance with this chapter.[Added] DFSA RM56/2008 (Made 1st July 2008). [VER19/07-08]GEN 9.2.10 Guidance
The referral of a
Complaint may involve the transfer of Personal Data, as defined under the Data Protection Law 2007, DIFC Law No 1 of 2007. In this respect, anAuthorised Firm should consider its obligations under the Data Protection Law 2007.[Added] DFSA RM56/2008 (Made 1st July 2008). [VER19/07-08]Retail Client awareness
GEN 9.2.11
An
Authorised Firm must ensure that a copy of itsComplaints handling procedures is available free of charge to anyRetail Client upon request.[Added] DFSA RM56/2008 (Made 1st July 2008). [VER19/07-08]Retention of records
GEN 9.2.12
An
Authorised Firm must maintain a record of allComplaints made against it for a minimum period of six years from the date of receipt of aComplaint .[Added] DFSA RM56/2008 (Made 1st July 2008). [VER19/07-08]GEN 9.2.13
This record must contain the name of the complainant, the substance of the
Complaint , a record of theAuthorised Firm's response, and any other relevant correspondence or records, and the action taken by theAuthorised Firm to resolve eachComplaint .[Added] DFSA RM56/2008 (Made 1st July 2008). [VER19/07-08]Systems and controls
GEN 9.2.14 GEN 9.2.14
In accordance with GEN Rules 5.3.4 and 5.3.5, an
Authorised Firm must put in place adequate systems and controls in order for it to identify and remedy any recurring or systemic problems identified fromComplaints .[Added] DFSA RM56/2008 (Made 1st July 2008). [VER19/07-08]GEN 9.2.14 Guidance
An
Authorised Firm should consider whether it is required to notify theDFSA , pursuant to Rule 11.10.7, of any recurring or systemic problems identified fromComplaints .[Added] DFSA RM56/2008 (Made 1st July 2008). [VER19/07-08]
Amended in accordance with Notice of Amendments to Legislation April 2011 [VER27/02-11]Outsourcing
Guidance
An
Authorised Firm may outsource the administration of itsComplaints handling procedures in accordance with GEN Rule 5.3.21.[Added] DFSA RM56/2008 (Made 1st July 2008). [VER19/07-08]GEN 9.3 GEN 9.3 Complaints recording procedures for Professional Clients
GEN 9.3.1
An
Authorised Firm must have adequate policies and procedures in place for the recording ofComplaints made against it byProfessional Clients .[Added] DFSA RM56/2008 (Made 1st July 2008). [VER19/07-08]GEN 9.3.2 GEN 9.3.2
An
Authorised Firm must maintain a record of anyComplaint made against it for a minimum period of six years from the date of receipt of theComplaint .[Added] DFSA RM56/2008 (Made 1st July 2008). [VER19/07-08]GEN 9.3.2 Guidance
Depending on the nature, scale and complexity of its business, it may be appropriate for an
Authorised Firm to have in place a suitableComplaints handling procedure forProfessional Clients in order to ensure that suchComplaints are properly handled and remedial action is taken promptly. SuchComplaints handling procedures would be expected to include provisions about the independence of staff investigating theComplaint and bringing the matter to the attention of senior management.[Added] DFSA RM56/2008 (Made 1st July 2008). [VER19/07-08]GEN 9.4 GEN 9.4 Additional requirements for complaints related to Money Services
GEN 9.4.1
This section applies to a complaint made by a Client against an Authorised Firm relating to the Financial Service of:
(a) Providing Money Services; or(b) Arranging or Advising on Money Services.Derived from RMI266/2020 (Made 26th February 2020). [VER48/04-20]GEN 9.4.2
A requirement in this section does not apply in relation to a Market Counterparty, if the Market Counterparty has given prior notice in writing to the Authorised Firm that it has elected to waive the requirement.
Derived from RMI266/2020 (Made 26th February 2020). [VER48/04-20]Complaints to be resolved within 15 business days
GEN 9.4.3
(1) An Authorised Firm must, except as provided in (2), advise the complainant in writing of the resolution of the Complaint and, if applicable, provide the complainant with clear terms of redress no later than 15 business days after the day on which it received the Complaint.(2) If the Authorised Firm cannot comply with (1) for reasons beyond its control, it must send a holding reply, clearly indicating the reasons for the delay and specifying the deadline by which the complainant will receive a full reply.(3) When the Authorised Firm advises the complainant of the outcome of a Complaint, it must inform the Client in writing:(a) that the Client may refer the matter to the independent complaints handling service referred to in GEN Rule 9.4.4 if the Client is not satisfied with the outcome;(b) details of the independent complaints handling scheme and how the Client may access the service; and(c) that the firm will pay the costs of the application fee to the scheme in the circumstances specified in GEN Rule 9.4.4 (c).Derived from RMI266/2020 (Made 26th February 2020). [VER48/04-20]Independent complaints handling service
GEN 9.4.4 GEN 9.4.4
An Authorised Firm must:(a) ensure that Clients have access to an independent complaints handling service that can determine Complaints where a Client is not satisfied with the outcome of the firm’s resolution of a Complaint;(b) ensure that the service referred to in (a) is easily accessible to its Clients; and(c) bear the cost of any application fee payable for the use of the service referred to in (a), unless the Complaint is found to be unsuccessful, in which case the firm may recover the cost of that fee from the Client.Derived from RMI266/2020 (Made 26th February 2020). [VER48/04-20]GEN 9.4.4 Guidance
An independent complaints handling service referred to in GEN Rule 9.4.4 may be a small claims tribunal provided that the tribunal has jurisdiction to hear and determine disputes of the nature covered under this section i.e. relating to money services.
Derived from RMI266/2020 (Made 26th February 2020). [VER48/04-20]