The International Financial Services Centres Authority (IFSCA) (herein referred as ‘Authority’ ) vide Circular having reference number F. No. IFSCA-LPRA/3/2024-Legal and Regulatory Affairs dated December 02, 2024 issued a Circular on “Complaint Handling and Grievance Redressal by Regulated Entities in the IFSC” and also a Press Release of the same date. The Circular intends to develop an efficient and effective mechanism for handling of complaints and redressal of grievances of consumers by entities registered in IFSC.
The salient features of the Circular are as follows:
Date of enforcement: The Circular shall come into force with effect from January 15, 2025.
Applicability: The Circular shall apply to all entities regulated by IFSCA, dealing with any Consumer or Client other than their Group Entities. However, this Circular shall not apply to a Foreign University or a Foreign Educational Institution or any Ancillary Service Provider or a BATF Service Provider or a finance company engaged in aircraft leasing or ship leasing or global/regional corporate treasury centre in the IFSC.
Complaint Handling, Grievance Redressal and Appeal Mechanism: –
Policy on handling of complaints and grievance redressal
Regulated Entity shall have a Policy on handling of complaints and grievance redressal, duly approved by its governing body or its Board of Directors consisting of the following:
- adequate mechanisms for receiving, handling and redressal of complaints in a fair, transparent and timely manner.
adequate mechanisms for receiving, handling and redressal of complaints in a fair, transparent and timely manner.
- procedures to consider the nature, scale and complexity of its business along with its size and organizational structure.
procedures to consider the nature, scale and complexity of its business along with its size and organizational structure.
- clearly define what constitutes a ‘complaint’ depending upon the nature of financial products and services undertaken by the Regulated Entity in the IFSC.
clearly define what constitutes a ‘complaint’ depending upon the nature of financial products and services undertaken by the Regulated Entity in the IFSC.
The Policy shall be prominently disclosed on the website of the Regulated Entity or on a dedicated webpage of its Group Entity, as applicable, under the heading “Complaints and Grievance Redressal”.
Complaint Handling Procedure
On receipt of Compliant, Complaint Redressal Officer (“CRO”) to assess the same on the merits
- In case of acceptance, acknowledgement of acceptance of complaints shall be done, in writing, within 3 working days of receipt of the complaint.
In case of acceptance, acknowledgement of acceptance of complaints shall be done, in writing, within 3 working days of receipt of the complaint.
- In case of non-acceptance, the complainant to be informed within 5 working days along with reasons.
In case of non-acceptance, the complainant to be informed within 5 working days along with reasons.
- Complaint to be examined and processed in a fair, transparent and independent manner.
Complaint to be examined and processed in a fair, transparent and independent manner.
- CRO shall have sufficient authority to resolve the complaint or access to individuals with the necessary authority to be able to handle the complaint in a fair and impartial manner.
CRO shall have sufficient authority to resolve the complaint or access to individuals with the necessary authority to be able to handle the complaint in a fair and impartial manner.
- Additional information may be asked from the complainant during processing of the complaint.
Additional information may be asked from the complainant during processing of the complaint.
- Regulated Entity shall dispose of complaints preferably within 15 days but ordinarily not more than 30 days of acceptance of complaint.
Regulated Entity shall dispose of complaints preferably within 15 days but ordinarily not more than 30 days of acceptance of complaint.
- In case of rejection of a complaint, the Regulated Entity shall give reasons for rejection of the complaint, in writing.
In case of rejection of a complaint, the Regulated Entity shall give reasons for rejection of the complaint, in writing.
- Appeal Mechanism: – In case a complainant is not satisfied with the resolution provided by the Regulated Entity or in case of rejection of complaint the complainant may file an appeal before a Complaint Redressal Appellate officer (“CRAO”), preferably within 21 days from the receipt of the decision from the CRO.
Appeal Mechanism: – In case a complainant is not satisfied with the resolution provided by the Regulated Entity or in case of rejection of complaint the complainant may file an appeal before a Complaint Redressal Appellate officer (“CRAO”), preferably within 21 days from the receipt of the decision from the CRO.
- CRAO of a Regulated entity shall be at the level of or one level below a Key Managerial Personnel
CRAO of a Regulated entity shall be at the level of or one level below a Key Managerial Personnel
- The CRAO shall dispose of the Appeal within a period of 30 days.
The CRAO shall dispose of the Appeal within a period of 30 days.
- Complaint before the Authority:
Complaint before the Authority:
- If the complainant is still dissatisfied with the decision of the Regulated Entity and upon exhaustion of the appeal mechanism of the Regulated Entity, the complaint may be filed with IFSCA preferably within 21 days from the receipt of the decision from the Regulated Entity
If the complainant is still dissatisfied with the decision of the Regulated Entity and upon exhaustion of the appeal mechanism of the Regulated Entity, the complaint may be filed with IFSCA preferably within 21 days from the receipt of the decision from the Regulated Entity
- Provided that where the complaint is against a trading member or a clearing member or a depository participant or a bullion trading member or a bullion clearing member, the complainant shall first approach the relevant market infrastructure institution for redress of the complaint within the said timeline and the market infrastructure institutions shall have appropriate mechanisms in place for grievance redressal and the same shall be disclosed on their respective websites.
Provided that where the complaint is against a trading member or a clearing member or a depository participant or a bullion trading member or a bullion clearing member, the complainant shall first approach the relevant market infrastructure institution for redress of the complaint within the said timeline and the market infrastructure institutions shall have appropriate mechanisms in place for grievance redressal and the same shall be disclosed on their respective websites.
- If the complainant is still not satisfied with the decision of the market infrastructure institution, the complainant may file a complaint before the Authority, preferably within 21 days from the receipt of the decision.
If the complainant is still not satisfied with the decision of the market infrastructure institution, the complainant may file a complaint before the Authority, preferably within 21 days from the receipt of the decision.
- Maintenance of Records:
Maintenance of Records:
- The Regulated Entity shall maintain all the specified records relating to handling of complaints in electronic retrieval form for the same period as prescribed by the Authority.
The Regulated Entity shall maintain all the specified records relating to handling of complaints in electronic retrieval form for the same period as prescribed by the Authority.
- In case there is no specific mention of such time period, the record shall be maintained for at least six years from the date of disposal of complaint.
In case there is no specific mention of such time period, the record shall be maintained for at least six years from the date of disposal of complaint.
- In case of any pending litigation or legal proceeding relating to the complaint, the record shall be maintained for the applicable period after final disposal of the proceedings
In case of any pending litigation or legal proceeding relating to the complaint, the record shall be maintained for the applicable period after final disposal of the proceedings
- Reporting:
Reporting:
- The Regulated Entity shall file reports on handling of complaints in the form and manner specified by the Authority from time to time.
The Regulated Entity shall file reports on handling of complaints in the form and manner specified by the Authority from time to time.
- The Regulated Entity shall have a section with heading “Complaint Handling and Grievance Redressal” in its Annual Report, which shall provide data of all complaints received, resolved, rejected and pending during the year in a tabular/ graphical format.
The Regulated Entity shall have a section with heading “Complaint Handling and Grievance Redressal” in its Annual Report, which shall provide data of all complaints received, resolved, rejected and pending during the year in a tabular/ graphical format.
- In case where the Regulated Entity is not required to file an annual report for its business activities in the IFSC, it shall display the information on complaint handling on its website
In case where the Regulated Entity is not required to file an annual report for its business activities in the IFSC, it shall display the information on complaint handling on its website
The Regulated Entity may develop an online system for handling complaints depending upon the nature, scale and complexity of its business along with its size and organizational structure.
The Compliance Officer of the Regulated Entity shall be responsible for handling and disposal of complaints in accordance with the regulatory requirements specified by IFSCA.
The Authority may take such action, as deemed fit, against Regulated Entity for any non-compliance of the requirements specified by the Authority.
The requirements in this Circular are in addition to the requirements contained in any other regulations specified by IFSCA. In case any provision of this Circular is found to be in contravention with any provision of any applicable Act, Rule or Regulation, then such provision of the applicable Act, Rule or Regulation shall prevail.
Compliance requirements for Companies:
- Align the Protection of Policyholder’s Interests & Grievance Redressal Policy of the Company to incorporate the necessary regulatory prescriptions.
Align the Protection of Policyholder’s Interests & Grievance Redressal Policy of the Company to incorporate the necessary regulatory prescriptions.
- To set up Complaint Redressal mechanism for IIO customer grievances in the specified manner.
To set up Complaint Redressal mechanism for IIO customer grievances in the specified manner.
- Display the required details/information regarding the grievances and redressal procedure, on the website as specified.
Display the required details/information regarding the grievances and redressal procedure, on the website as specified.
A copy of the Circular is attached herewith for your ready reference.
Source category: IFSC Insurance Office
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