How should a dealer respond to a customer complaint about a muni transaction?

• A. Acknowledge, investigate, take corrective action if needed, and document the resolution.
• B. Deny responsibility and refer to issuer.
• C. Ignore if the customer signs a waiver.
• D. File the complaint with regulatory authorities without internal action.

Answer: (A)

When a customer has a complaint about a muni transaction, the dealer should handle it through a documented, step-by-step process: acknowledge the complaint, investigate the facts, take corrective action if the investigation shows an issue, and document the resolution. This approach reflects the dealer’s duty to treat customers fairly and to maintain clear records of how complaints are addressed.

Acknowledging the complaint shows the customer that their concern is being taken seriously. Investigating ensures you gather all relevant details—trade date, confirmations, communications, disclosures, and any fees or prices involved—to determine what happened. If the investigation reveals an error, miscommunication, or a process problem, taking corrective action helps rectify the situation and maintain trust. Documenting the resolution creates a traceable record for compliance, audits, and potential regulatory review, and it helps identify any patterns that might require changes to internal controls or procedures.

Denying responsibility and referring to the issuer shifts blame away from the dealer and does not fulfill the duty to resolve the customer’s concern. Ignoring the complaint even if a waiver is signed bypasses required accountability. Filing with regulators without first pursuing internal action neglects the proper, timely resolution process and can undermine the purpose of the complaint-handling system.