Dubai Financial Regulator Requires Authorized Firms to Handle Complaints Appropriately

The Dubai Financial Services Authority (DFSA) has reviewed the entire process of complaint handling within the Dubai International Financial Center (DIFC) and released findings and requirements.

The DFSA believes that complaints are important indicators of the regulator’s culture and conduct. It requires authorized firms to investigate related situations and give solutions fairly, consistently, and promptly in accordance with adequate policies and procedures, providing easy and straightforward ways for clients to complain and assuring them that the complaints will be handled appropriately.

In recent years, the number of authorized firms, clients, and related activities has increased while the number of complaints has not risen in tandem. As a result, the DFSA reviewed the whole process of complaint handling and made requirements for the AFs.

The thematic review has several key themes, including written complaint procedures, complaints recognition, governance arrangements, volume of complaints, complaints outcomes, complaints monitoring, training and staff awareness, and record keeping. The DFSA listed areas for improvement according to the themes respectively for the authorized firms and provided examples of good practice.

The regulator regards complaints as valuable recourse for intelligence collection, which helps businesses identify trends and issues, improve products and services, and maintain their competitiveness.

Therefore, the DFSA reminds all authorized firms about their obligations to report significant events and related situations.