Final answer:
Yes, customer complaints can trigger a requirement for the member firm to report the event to FINRA.
Step-by-step explanation:
Yes, customer complaints can trigger a requirement for the member firm to report the event to FINRA.
FINRA (Financial Industry Regulatory Authority) is a self-regulatory organization in the United States that oversees brokerage firms operating in the financial markets. One of the responsibilities of member firms is to report customer complaints to FINRA if certain criteria are met.
For example, if a customer complaint involves allegations of theft, forgery, or unauthorized trading, the member firm is required to report the event to FINRA.