HANDLING OF CLIENTS’ COMPLAINTS POLICY
Coverdeal Holdings Limited, hereafter the “Company”, is a company registered in Cyprus (registration number HE 303127), acting as a Cypriot Investment Firm, licensed and regulated by the Cyprus Securities and Exchange Commission (License number 231/14). The purpose of this Policy is to set out the procedure to be followed and the appropriate action required to be taken by the Company in the case of a complaint by any client to ensure the Company’s compliance with paragraph 13 of Directive DI 144-2007-01 of the Cyprus Securities and Exchange Commission for the Authorisation (hereafter “CySEC”) and Operating Conditions of the Cyprus Investment Firms.
“Complainant” means any person, natural or legal, which is eligible for lodging a complaint to the Company and who has already lodged a complaint.
“Complaint” means a statement of dissatisfaction addressed to the Company by a complainant relating to the provision of investment services.
In accordance with Directive DI144-2007-01, the Company shall establish, implement and maintain effective and transparent procedures for the reasonable and prompt handling of complaints or grievances received from retail or potential retail clients, and to keep a record of each complaint or grievance and the measures taken for the complaint’s resolution.
In addition, the Company is required to:
- Apply a complaints management policy, which is defined and endorsed by the senior management and the board of directors, who will be responsible for its implementation and for monitoring the Company’s compliance with it.
- Ensure that it has a complaints management function, which enables complaints to be investigated fairly and possible conflicts of interest to be identified and mitigated.
Clients’ complaints or grievances are initially handled by the Compliance Department. However, the final settlement of non-trivial complaints or grievances needs to be approved by Senior Management.
A complainant shall complete the Complaint Form developed by the Company. Once completed, it should be sent either in a hard copy along with a copy of the complainant’s identification document and any additional documentation that would be relevant to the complaint to Kristelina Tower, 12 Arch. Makarios III Avenue, Office 201, 2nd Floor,, Mesa Geitonia, 4000, Limassol, Cyprus or by e-mail to firstname.lastname@example.org
No Complaint shall be valid if submitted after six months of its alleged occurrence and should be deemed to be settled in full upon the expiry of the said 6 months period. The Client hereby waives any rights it may have inclusively the right to submit any complaint or claim or allegation outside the permitted timeframe of six months from the day that the said alleged occurred, irrespectively of the nature of the event (i.e. trade, refund, etc.) or the size of the Complaint.
The procedure which shall be followed by the Company, when handling with clients’ complaints or grievances, is the following:
- Upon receiving the complaint or grievance, the Company will register the complaint directly to an internal register, giving it a unique reference number. The unique reference number must be consisted of ten digits:
- the first two digits are the code of the CIF regarding the Transaction Reporting System – TRS
- the following four digits define the year
- the last four digits denote the number of each complaint serial number
The unique reference number is communicated to the complainant.
- The CIF informs the complainant that he should use the said reference number for future communication with the CIF, the Financial Ombudsman and/or the CySEC regarding the specific complaint
- A complaint or grievance is initially handled by a member of the Compliance Department. The employee receiving the complaint or grievance shall take the necessary actions so that the complaint or grievance is properly addressed.
- The complaint or grievance in the form that has been received immediately (within three working days), should be forwarded to the head of the department where the complaint is addressed.
- The member of the Compliance Department shall send a written acknowledgement letter inform the complainant that the complaint or grievance is under investigation and has been forwarded to the relevant department/personnel, providing all details so that the complainant is aware who is dealing with his/her complaint or grievance. Along with the letter, the Company’s Handling of Clients’ Complaints Policy shall be provided to the complainant free of charge.
- The member of staff, in addition to the above, should make all best efforts to ensure that in the case of the complaint or grievance being of such nature that can be resolved immediately, to do so that the client will not have to pursue the filling of a formal complaint. The member of staff in such a case shall not:
- Commit him/herself in any way to the client
- Address any issues in relation to best execution
- Address any issues relating to legal issues
- Commit the Company in taking any action prior to examining the issues in a formal manner
The Company sets 10 business days from the day the original complaint is received as a standard investigation period. If the investigation is complete in less than 10 business days, the complainant will be informed about the results of the investigation immediately upon its completion. However, if a complaint is not resolved within the standard investigation period, the Company will inform the complainant in details about causes of delay, a status of the investigation process and an expected date of completion of the investigation.
1.1Procedure to be followed when a formal complaint or grievance is received:
- When a written complaint or grievance is received, this shall be forwarded to the relevant department which is the most appropriate for dealing with the complaint.
- The member of the Compliance Department shall contact the client to inform him/her that the complaint or grievance has been received and it is under investigation.
- Upon receiving a written complaint or grievance, the following evidence and information regarding the complaint should be obtained and recorded:
- The identification particulars of any client having made a complaint or grievance.
- The service provided by the Company and related to the complaint or grievance.
- The employee responsible for the provision of those services.
- The department where the employee belongs.
- Date of receipt and registration of complaint or grievance.
- Content of the complaint or grievance.
- The capital and the value of the financial instruments which belong to the client.
- The magnitude of the damage claimed by the client.
- Reference of any correspondent exchanged between the Company and the client.
- The events leading to the complaint or grievance should be examined and assessed based on the information provided by the client.
- The facts as stated by the client have been examined and verified whether any additional information, need to be retrieved from the Company’s archive (electronic mail, recorded telephone calls, IT data, etc).
- All non-trivial complaints or grievances shall be brought to the attention of and their resolution should be approved by the Senior Management.
- Upon investigation completion, of the investigation a report shall be prepared stating the facts and brought to management’s attention, which will decide on the formal response to the client and the action to be taken.
- Upon investigation completion, the member of the Compliance Department shall inform the complainant in writing, using a plain language which is clearly understood, about results of the investigation and actions taken to satisfy the complainant’s demand(s) without any unnecessary delay.
If the provided investigation results does not fully satisfy the complainant’s demands, the Company should provide to the complainant in writing a thorough explanation of its position on the complaint and set out the complainant’s option to maintain the complaint e.g. through CySEC, the Financial Ombudsman, ADR Mechanism, or the relevant Courts.
In the case where a client complaint or grievance is valid, the management shall take such necessary action together with the Head of Department(s) to which the complaint or grievance is related in order to identify and verify:
- Reasons for failure of procedure followed.
- Weaknesses of the internal controls.
- Implementation of internal controls that would prevent any complaint or grievance in the future.
All suggested procedures shall be approved by Senior Management at the meeting following the completion of the investigation.
The above mentioned procedure shall be disclosed in summarised form to the complainant through the agreement which is signed for the provision of investment services.
1.2 Complaints on an on-going basis
The Company undertakes to analyze, on an on-going basis, complaints-handling data, to ensure that they identify and address any recurring or systemic problems, and potential legal and operational risks, for example by:
- Analyzing the causes of individual complaints so as to identify root causes common to types of complaints,
- Considering whether such root causes also affect other processes or financial means, including those not directly complained of; and
- Correcting, where reasonable to do so, such root causes.
1.3 Reporting of complaints
Every month, and within five days after the reporting month, Company is required to submit the form ΧΧ_yyyymmdd_T144-002-01 (the “Form”) to the CySEC, in order to inform regarding the complaints it receives and how these are being handled.
- A relevant field where each CIF shall report whether it has received complaints from clients during the reporting period. CIFs that did not receive complaints during the reporting period, shall select “No” in the relevant field and shall submit the Form without completing any further information.
- A relevant field where each CIF shall report the number of its clients (who during the last six months have entered into at least one transaction) at the end of the reporting period.
- The following complaints category (complaints cause): “issue in relation to investor’s withdrawal of investor’s funds”. CIFs should include in this category any complaint which relates in any manner with withdrawals of clients funds, including the cases where a disagreement occurs between the client and the CIF regarding the amount that the client is eligible to withdraw from his investing account. Therefore the above mentioned complaints will no longer be registered to category “Terms of Contracts/Fees/Charges”, which still remains, but CIFs shall register to it only complaints that relate specifically to contractual provisions and fees.
- Column in which the date that the incident took place will be registered, regarding the complaint of the client.
- Column in which the amount that was paid to the investor shall be registered, in case the complaint was resolved (settlement amount).
1.4 Record-keeping of complaints or grievances received
The responsible department for the record keeping of complaints or grievances received is the Compliance Department. In particular, the Head of Back Office, or his/her designee, will keep a record of each complaint and the measures taken for the complaint’s resolution.
The complaint shall be registered once it is receives on an internal archive and in an appropriate manner. The Head of Compliance Department, or his/her designee, shall maintain a central record of all complaints that includes the following information:
- name, address and account number (if available) of the complainant;
- date on which the complaint was received;
- department(s) involved the complaint investigation along with the names of the responsible employees;
- description of the nature of the complaint;
- disposition of the complaint.
The Company shall maintain all complaints or grievances for a minimum period of five years.
V.Financial Ombudsman of the Republic of Cyprus
In case you are not satisfied with the company’s final decision, you can use your unique reference number to contact the:
Financial Ombudsman of the Republic of Cyprus
If you are not satisfied with the Company’s final decision you may check with the office of the Financial Ombudsman of the Republic of Cyprus and seek mediation for possible compensation. It is important that you contact the Financial Ombudsman of the Republic of Cyprus within four (4) months of receiving a final response from the Company otherwise the Financial Ombudsman of the Republic of Cyprus may not be able to deal with your complaint. If the Company was unable to provide you with a final response within the three (3) month time period specified above you may again contact the office of the Financial Ombudsman of the Republic of Cyprus no later than four (4) months after the date when the company ought to have provided you with its final decision.www.financialombudsman.gov.cy email@example.com P.O. BOX: 25735, 1311 Nicosia, Cyprus +357 2284 8900 +357 2266 0584 +357 2266 0118
Cyprus Securities and Exchange Commission
You may also maintain your complaint with the Cyprus Securities and Exchange Commission. However please note that the Cyprus Securities and Exchange Commission does not have restitution powers and therefore does not investigate individual complaints.www.cysec.gov.cy firstname.lastname@example.org P.O. BOX 24996, 1306 Nicosia, Cyprus +357 2250 6600 +357 2250 6700