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Sales Practice Complaint Report

The Sales Practice Complaint Report is a quarterly report that displays trends in complaints with Sales Practice problem codes as reported to FINRA pursuant to FINRA Rule 4530. Note: prior to July 1, 2011, this report showed complaints reported pursuant to NASD Rule 3070(c) or NYSE Rule 351(d). For the purposes of the report, Sales Practice Complaints are evaluated against the number of representatives registered with the firm and the sales revenue of the firm. The complaint counts in this report are different than the counts provided in the Customer Complaint Report because the Sales Practice Complaint Report evaluates only complaints with sales practice problem codes. The problems considered to be sales practice problems are available on FINRA's website; a link to that information is provided below.

Customer complaints are required to be reported on a quarterly basis per FINRA Rule 4530. Complaints must be submitted within 15 days of the end of the calendar quarter.

The count of customer complaints includes all complaints submitted to FINRA on/or before the Customer Complaint due date of a given quarter, since the Customer Complaint due date of the previous quarter.  To view a list of customer complaint due dates for each quarter, please see Disclosure Events and Customer Complaint Filings.

This report becomes available approximately 6 weeks after the last business day of the quarter. Users who have not opted-out of notifications will receive an email indicating that new reports have been published.

Report Glossary

The tables below provide a reference description for all of the elements found in the Sales Practice Complaints Report. (See Sales Practice Complaints Report for a sample segment of the report.)

Term

Definition

% Change from Prior Period This is the % difference between the current and previous quarter's data for the value in the prior column of the report. If the previous quarter's count is zero or data does not exist for the previous quarter, this field will be blank. ((Current Quarter - Previous Quarter) / Previous Quarter)*100
Firm
Sales Practice Complaints This is the number of complaints submitted to FINRA's Rule 4530 Application for the report period that listed a Sales Practice Problem Code. Complaints included for the period have a submission date during the report period.
Total Reps This is the total number of representatives registered with the firm at the end of the reporting period. A registered person is anyone with an open employment with the firm on the last day of the reporting period, where the person has a registration status of Approved, Approved Pending Prints, or Temporary Registration with FINRA or other SRO. This data is from Web CRD®.
Sales Practice Complaints per 100 Reps This is the number of sales practice complaints the firm submitted during the report period per 100 reps registered with the firm. ((Current Quarter Sales Practice Complaints / Total Reps) * 100)
Sales Revenue This is the sum of total securities commissions, revenue from sale of investment company shares, and commodities revenue from the Statement of Income section of the FOCUS II or IIA Report submitted by the firm to FINRA for the report period.
Sales Practice Complaints per $M Sales This is the number of sales practice complaints the firm submitted during the report period per million dollars in sales revenue. ((Current Quarter Sales Practice Complaints * 1,000,000) / (Sales Revenue))
Industry
Sales Practice Complaints This is the number of complaints with a Sales Practice Problem Code submitted by the industry to FINRA's Rule 4530 Application during the report period.
Sales Practice Complaints per 100 Reps This is the industry average of sales practice complaints submitted during the report period per 100 reps.
Sales Practice Complaints per $M Sales This is the industry average of sales practice complaints submitted during the report period per million dollars in sales revenue.

Sales Practice Complaint Report