Responding to a client complaint: the first 48 hours at a small RIA
When a client complains, a small RIA should acknowledge it the same day, log it in the complaints and incidents log, gather the facts before answering, fix anything that was wrong, reply to the client in writing, and close the log entry with what was done and any change to process. Keep the reply plain and specific, involve your compliance consultant if the complaint alleges wrongdoing, and don't argue in writing.
The email arrives on a Thursday afternoon: the client's fee was higher than they expected, nobody returned their call last week, and they're "seriously considering moving". It's tempting to pick up the phone, smooth it over and move on. That usually fixes the mood. It doesn't fix the record, and it doesn't always fix the cause.
What happens in the first 48 hours?
| When | Step |
|---|---|
| Same day | Acknowledge: thank them, say you're looking into it, and say when they'll hear back |
| Same day | Log it: date, who, how it arrived, what they said in their words |
| Day 1 to 2 | Get the facts: the billing record, the call log, the trades, whatever applies |
| Day 1 to 2 | Decide: was something wrong? What needs fixing? |
| By the date you gave | Reply in writing: what you found, what you've done, what happens next |
| After | Close the log entry with the outcome and any process change |
What makes a good reply?
- It answers the specific points the client raised.
- It says plainly what you found, including if the firm got something wrong.
- It says what you've done about it: a refund, a correction, a changed process.
- It's short, and written as if the client might show it to someone else.
A worked example
Take the email above at a hypothetical two-person RIA. The advisor replies within the hour: thank you, I'm looking into both points, you'll hear from me by Tuesday. The complaint goes in the log that afternoon. The billing record shows a new account was billed outside the household, so the client was charged at a higher tier. The call log shows the voicemail was missed during a holiday. On Monday the advisor calls, then sends a written summary: the overcharge is refunded, the account is now grouped correctly, and voicemails are now checked daily by two people. The log entry is closed with both fixes.
What are the common gaps?
- Fixing it on the phone and never logging it.
- Replying before knowing the facts.
- A defensive written reply that makes things worse.
- Fixing the client's problem but not the cause.
When is this overkill?
A quick "can you resend my statement?" isn't a complaint. Anything that expresses dissatisfaction with advice, fees, service or conduct should follow the routine.
How Advorra fits
Advorra keeps the complaints and incidents log alongside the client's household, communications, billing runs and trades, so the facts you need for a reply, and the log entry itself, sit with the client. See the product page, or read about the complaints and incidents log and fixing a billing error.
One thing to do this week: check your written procedures define what counts as a complaint, in one sentence.
An operations routine, not legal or compliance advice.
Questions advisors ask
What counts as a complaint?
Your written procedures should define it. Many firms treat any expression of dissatisfaction about the firm's service, advice or conduct as a complaint, whether it arrives by phone, email or in person.
Does a verbal complaint need logging?
Many firms log verbal complaints too, especially if they're about advice, fees or an error. Check your procedures.
How fast should we respond?
Acknowledge the same or next business day, then reply in full once you have the facts. Tell the client when to expect it.
When should the compliance consultant be involved?
When a complaint alleges misconduct, a significant loss or a regulatory issue, or if you're unsure.
Is this legal advice?
No. It is an operations routine. Serious complaints may need legal advice.
See it on a demo firm
Advorra is practice software for independent RIAs: clients, models, IPS, billing and compliance records in one place, on top of the custodian you already use. Built by The CollabHub.
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