On January 27, 2021, the International Organization of Securities Commissions (IOSCO) published a report titled “Complaint Handling and Redress System for Retail Investors” that sets forth practices aimed at assisting its members in developing and improving their complaint handling procedures and mechanisms for retail investors. The report notes that access to independent, affordable, fair, accountable, timely and efficient redress mechanisms is critical for investor protection. Effective mechanisms for addressing financial misconduct that harm financial consumers can also promote investor confidence in financial markets.

The report sets out nine practices including taking steps to raise investor awareness of various available complaint handling systems, making available as many channels as possible for retail investors to submit complaints, encouraging financial service providers to offer a wide range of resolutions to retail investor complaints and using complaint data to identify areas for new or enhanced investor education initiatives. AUM Law will monitor developments in this area and keep you informed.

January 29, 2021