Complaint Handling and Grievance Redressal by Regulated Entities in the IFSC
The IFSCA has issued circular No F. No. IFSCA-LPRA/3/2024-Legal and Regulatory Affairs dated 2nd December 2024 on Complaint Handling and Grievance Redressal by Regulated Entities in the IFSC effective from 15th January 2025.
Compliance requirements under this circular in addition to the requirements on grievance redressal contained in any other regulations specified by the Authority. In case any provision of this circular is in contradiction with any provision of the applicable Act, Rule or Regulation, the provisions of the said Act, Rule or Regulation to prevail.
Module No. 10 of the Conduct of Business Directions-v 6.0 of the IFSCA Banking Handbook stands superseded from the date of this circular coming into effect.
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Applicability
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Applicable to all entities regulated by IFSCA dealing with any Consumer other than their Group Entities.
Not applicable Foreign University, a Foreign Educational Institution, an Ancillary Service Provider, a BATF Service Provider, a Finance Company / Finance Unit engaged in aircraft leasing or ship leasing and global/regional corporate treasury centre in the IFSC. For indicative list of matters not considered as ‘complaint’ -Refer Schedule-I of this circular. |
| Policy for Complaint Handling and Grievance Redressal
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Regulated Entity to have a policy on handling of complaints and grievance redressal, duly approved by its governing body or its Board of Directors, as applicable.
Policy to have adequate mechanisms for receiving, handling and redress of complaints in a fair, transparent and timely manner. |
| Time limit of disposal of complaint | Regulated Entity to dispose of complaint preferably within 15 days but ordinarily not later than 30 days of acceptance of complaint and to give reasons for rejection of the complaint, in writing. |
| Reporting to Authority | Regulated Entity to file reports on handling of complaints in the form and manner specified by the Authority from time to time. |
| Maintenance of Records | Regulated Entity to maintain all records relating to handling of complaints, including the following:
i. Complaints received and processed; ii. All correspondence exchanged between the Regulated Entity and the complainants; iii. All information and documents examined and relied upon by the Regulated Entity while processing of the complaints; iv. Outcome of the complaints; v. Reasons for rejection of complaints, if any; vi. Timelines for processing of complaints; and vii. Data of all complaints handled by it. Regulated Entity to maintain records in electronic retrieval form for period as mandated by the Authority and in case of no such specific mention of time period, records to be maintained for be at least six years from the date of disposal of complaint In case of any pending litigation or legal proceeding relating to the complaint record to be maintained for the applicable period, after final disposal of the proceeding. |
| Disclosure of Complaint Handling and Grievance Redressal | Regulated Entity to have a section with heading “Complaint Handling and Grievance Redressal” in its Annual Report- in case entity required to file an annual report for its business activities in the IFSC under the applicable laws. |
| Display | Regulated Entity to display information on complaint handling on its website or on a dedicated webpage of its Group Entity under the heading “Complaint Hand ling and Grievance Redressal” on an annual basis- in case Regulated Entity not required to file an annual report for its business activities in the IFSC |
| Role of Compliance Officer | Responsibility of compliance officer to ensure that handling and disposal of complaints to be in accordance with the regulatory requirements specified by IFSCA. |
| Online system for complaint handling | Option to Regulated Entity to develop an online system for complaint handling depending upon the nature, scale and complexity of its business along with its size and organizational structure |
| Appeal Mechanism | Option to Complainant to file appeal or to approach the authority in case not satisfied with the decision of Regulated Entity |
| Consequences for Non-Compliance | Power of Authority to take action under the provisions of IFSCA Act, 2019 and Regulations made thereunder |
| References |
Regulated Entity shall have the same meaning as assigned to it under clause 1.3.35 of the IFSCA (Anti Money Laundering, Counter-Terrorist Financing and Know Your Customer) Guidelines, 2022; Ancillary Service Provider shall mean an entity authorized by IFSCA for the purpose of providing ancillary services as defined under clause 1(B) of the circular titled “Framework for enabling Ancillary services at International Financial Services Centres” dated February 10, 2021 as amended from time to time; BATF Service Provider shall have the same meaning as assigned to it under clause (h) of sub-regulation (1) of regulation 3 of the IFSCA (Book-keeping, Accounting, Taxation and Financial Crime Compliance Services) Regulations, 2024. Group Entity means an entity of a business group that consists of a parent company or of any other type of legal person exercising control over the rest of the group, together with branches and/or subsidiaries. Finance Company shall have the same meaning as assigned to it under clause (e) of sub-regulation (1) of regulation 2 of the IFSCA (Finance Company) Regulations, 2021. Finance Unit shall have the same meaning as assigned to it under clause (f) of sub-regulation (1) of regulation 2 of the IFSCA (Finance Company) Regulations, 2021. Foreign Educational Institution shall have the same meaning as assigned to it under clause (iii) of sub-regulation (1) of regulation 3 of the IFSCA (Setting up and Operation of International Branch Campuses and Offshore Education Centres) Regulations, 2022. Foreign University shall have the same meaning as assigned to it under clause (iv) of sub-regulation (1) of regulation 3 of the IFSCA (Setting up and Operation of International Branch Campuses and Offshore Education Centres) Regulations, 2022. |
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