In our latest Cayman Islands regulatory alert, we discuss the complaints handling survey recently circulated to SIB licensees by CIMA and its approaching submission deadline.
On 3 March 2023, the Cayman Islands Monetary Authority (CIMA) issued a circular addressed to all Securities Investment Business Act licensees (SIB Licensees) asking them to complete a survey in order to give CIMA a better understanding of that firm’s complaints handling policies and procedures and to assess the effectiveness of a firm’s complaints management framework.
WHAT DOES THE SURVEY INVOLVE?
The survey contains two tabs divided into various sections. Broadly speaking, a firm must provide its contact details as well as the following information:
Number of complaints –asks for complaints data from 2020 onwards;
Nature of complaint – asks for the nature of the complaint(s) e.g., poor customer service;
Number of complaints pending/resolved – firms should maintain a complaints handling log so this information can readily be provided to CIMA;
Resolution of complaints – asks for the type of complaints resolution e.g., internal, cash settlement, legal action;
Post-resolution – this free text section asks firms to describe steps taken and controls put in place having analysed their complaints data in order to avoid incidents reoccurring.
APPROACHING DEADLINE
SIB Licensees are required to email the completed survey to CIMA together with copies of their complaints handling policies and procedures to contactsecurities@cima.ky by 23 March 2023.
COMMENTARY
The circular sets out CIMA’s expectations that firms should have well-written and board approved complaints handling policies and procedures in place. We recommend that these policies and procedures are periodically reviewed, updated and contain all mechanisms for complaints handling and redress. The survey responses, together with the related policies and procedures, will identify a firm’s complaints management framework and may potentially assist CIMA in publishing guidance on complaints handling for regulated entities at a future date.
HOW APPLEBY CAN HELP
Our regulatory team regularly works with firms to put in place effective complaints handling policies and procedures so that they are able to demonstrate that an effective complaints management framework is in place.
This information is provided for general information purposes only and is not intended to constitute legal advice. For specific regulatory advice, please contact any member of our Appleby regulatory team[1].
[1] Disclaimer wording.
For further information, please contact:
Simon Raftopoulos, Partner, Appleby
sraftopoulos@applebyglobal.com
