A mutual fund salesperson receives a client complaint regarding a trade executed three months ago, alleging misrepresentation during the fund's purchase. According to CIRO requirements, what is the initial action the salesperson should take?

Question: A mutual fund salesperson receives a client complaint regarding a trade executed three months ago, alleging misrepresentation during the fund's purchase. According to CIRO requirements, what is the initial action the salesperson should take?

Answer options: ✅ Forward the complaint immediately to their sponsoring dealer's compliance department for review.

• Attempt to resolve the complaint directly with the client to avoid involving compliance.
• Advise the client to contact CIRO directly to file an official complaint.
• Document the complaint in their personal records and await further instructions.

Correct answer: Forward the complaint immediately to their sponsoring dealer's compliance department for review.

Explanation: CIRO rules mandate that all client complaints, especially those involving allegations of misrepresentation, must be promptly escalated to the dealer's compliance department for thorough investigation and proper handling. Attempting to resolve it personally is inappropriate and non-compliant.