Can I sue my financial advisor and investment company for sharing my personal financial information with others?

Asked about 1 year ago - Charlotte, NC

My financial advisor has shared my personal financial information with several people, including investment balances, life insurance policy premiums and IRA balances. The individual has also left a detailed message outlining another individuals finances. I don't trust this individual with my finances and feel like there is a breach of contract and privacy. Is there anything I can do?

Attorney answers (5)

  1. Judy A. Goldstein

    Contributor Level 20

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    Lawyers agree

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    Answered . A lawsuit could be costly, time consuming and the outcome unpredictable., Move your accounts to a company or individual with more integrity. If there is a licensing body and/or corporate office for this financial advisor, report him/her.

  2. Robert V Cornish Jr.

    Contributor Level 16

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    Lawyers agree

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    Answered . You could file a complaint with the North Carolina Securities Commission, but I agree that such a suit would be costly and the outcome far from certain. Your local bank should offer brokerage services, and that is but one of many places to which you can move your money. Be sure that you move everything, including insurance products and the like by changing the agent of record. The firm you move to can assist with the paperwork, which is generally called an "ACAT" and "change of broker of record" form.

    The foregoing is not legal advice nor is it in any manner whatsoever meant to create or impute an attorney/client... more
  3. Richard Mark Nummi

    Contributor Level 1
    Best Answer
    chosen by asker

    Answered . This is a violation of Reg. SP. You should immediately contact either FINRA and/or the Securities & Exchange Commission to report this. Your FA will be investigated by one or the other as applicable and he/she and the associated firm will be investigated.

  4. Michael S Hill

    Contributor Level 7

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    Lawyer agrees

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    Answered . The broker-dealer has a privacy policy and it is most likely posted on its website. It sounds like a breach of contract and breach of the privacy policy. There may be contact information in the privacy policy for the broker-dealer to make amends. You should write a letter of complaint to the broker-dealer, attention the the president or chief compliance officer. You can find out that information on Brokercheck.finra.org or just address it to the title. You may also want to contact the state's securities commission. Suing the broker-dealer in arbitration is an option but you may have to show and prove damages for their breach in order to prevail. I would consult with an attorney knowledgeable in securities or financial services industry.

  5. John Arthur Daniels

    Contributor Level 14

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    Lawyer agrees

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    Answered . Most likely. Please consult the account agreement. Banks and brokerages these days also have privacy policies that they must conform to, per the Financial Privacy Act of 1978. However, as another attorney alluded to, a lawsuit will be costly. It might be better to report this incident to the management of this adviser's bank/brokerage and seek remediation this way. If that fails, you may wish to seek counsel.

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