The International Financial Services Centres Authority (IFSCA) has issued FAQs clarifying its circular dated December 2, 2024, titled “Complaint Handling and Grievance Redressal by Regulated Entities in the IFSC.” A consumer may raise a complaint concerning a financial product or service provided by an IFSCA-regulated entity in the IFSC. The complaint must ordinarily first be submitted to the regulated entity’s Complaint Redressal Officer (CRO). Anonymous complaints (except whistleblower complaints), incomplete or vague complaints, unsupported allegations, requests for guidance/information, matters unrelated to regulated financial products/services, and complaints concerning unregistered or unregulated activities are not treated as complaints under the mechanism.
The FAQs prescribe the internal redressal process and timelines. If a complaint is accepted, the CRO must acknowledge it in writing within 3 working days; if not accepted, the complainant must be informed with reasons within 5 working days. Accepted complaints by retail clients should preferably be resolved within 15 days and ordinarily within 30 days. If dissatisfied or if the complaint is rejected, the complainant may appeal to the Complaint Redressal Appellate Officer (CRAO), preferably within 21 days, and the CRAO must dispose of the appeal within 30 days. Regulated entities must prominently publish their complaint-handling policy and CRO/CRAO contact details on their websites.
After exhausting the regulated entity’s appeal process, a complainant may approach IFSCA by email at [email protected], preferably within 21 days of the CRAO's decision. For complaints against trading members, clearing members, depository participants, bullion trading members or bullion clearing members, the complainant must first approach the relevant Market Infrastructure Institution (MII). The FAQs also specify the documents and information to accompany an IFSCA complaint. IFSCA may refer complaints back where the prescribed process has not been exhausted, while in exceptional cases requiring urgent intervention to protect consumers or the integrity of the IFSC financial services market, it may entertain the complaint directly.
