What is the function of the Complaints and Settlement Database (ComSet)?

• A. To store client transaction histories
• B. To relay information about client complaints to IIROC
• C. To track internal disciplinary actions
• D. To analyze market trends

Answer: (B)

The Complaints and Settlement Database (ComSet) serves the essential function of relaying information about client complaints to the Investment Industry Regulatory Organization of Canada (IIROC). This system is designed specifically to ensure that all complaints from clients are documented and reported accurately. By doing so, it helps maintain transparency within the financial services industry and provides regulators with the necessary data to oversee compliance and consumer protection efforts.

Through the reporting of client complaints, ComSet plays a critical role in identifying trends in client issues, which can inform regulatory actions and help firms improve their practices. This focus on client feedback is vital for fostering a culture of accountability and responsiveness in the financial sector.