If a firm receives a customer complaint, how long must it retain documentation relating to that complaint?

The correct answer is that a firm must retain documentation relating to a customer complaint for four years. This retention period is primarily guided by regulatory requirements, which often dictate that firms maintain records of customer interactions, including complaints, to ensure accountability and facilitate future reference. Keeping these documents for four years helps companies effectively manage and resolve potential disputes, track the history of complaints, and analyze trends in customer satisfaction over time.

This period allows firms sufficient time to address any issues that may arise concerning the complaint and ensures they are compliant with industry regulations that may require documentation for a specific duration. It also aids in audits or reviews by regulatory bodies, which can assess how the company handles customer complaints and maintains records. Other options, such as two years or six years, do not align with typical standards, while retaining documentation for the life of the customer account may not be practical or necessary for purely operational complaints, as not all issues persist for that length of time.