A mutual fund representative employed by ABC Investments Inc. receives an email from a client expressing dissatisfaction with their investment performance and accusing the representative of not adequately explaining the risks involved. The client threatens to take legal action. What is the representative's immediate obligation regarding this communication?

Question: A mutual fund representative employed by ABC Investments Inc. receives an email from a client expressing dissatisfaction with their investment performance and accusing the representative of not adequately explaining the risks involved. The client threatens to take legal action. What is the representative's immediate obligation regarding this communication?

Answer options: ✅ Forward the client's email immediately to their supervisor and the compliance department as a formal complaint.

• Draft a detailed, factual response to the client outlining the risks that were discussed during their meetings.
• Delete the email and wait for the client to follow up with a formal written letter.
• Offer the client a complimentary consultation with a senior manager to resolve the issue informally.

Correct answer: Forward the client's email immediately to their supervisor and the compliance department as a formal complaint.

Explanation: Any client communication that can be construed as a complaint, especially one threatening legal action, must be immediately reported to the representative's supervisor and compliance department according to CIRO rules. This ensures proper protocol is followed and the complaint is handled appropriately.