Make sure the investment professional and her firm are registered with the SEC and licensed to do business in your state. And find out from your state’s securities regulator whether the investment professional or her firm have ever been disciplined, or whether they have any complaints against them.
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Claims of quick profits & offers to share “inside information,” are Red Flags
Some investments make money. Others lose money. That’s natural, and that’s why you need a diversified portfolio to minimize your risk. But if you lose money because you’ve been cheated, that’s not natural, that’s a problem.
Sometimes all it takes is a simple phone call to your investment professional to resolve a problem. Maybe there was an honest mistake that can be corrected. If talking to the investment professional doesn’t resolve the problem, talk to the firm’s manager, and write a letter to confirm your conversation. If that doesn’t lead to a resolution, you may have to initiate private legal action. You may need to take action quickly because legal time limits for doing so vary.
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How To Avoid Problems With Your Broker
Choosing someone to help you with your investments is one of the most important investment decisions you will ever make. While most investment professionals are honest and hardworking, you must watch out for those few unscrupulous individuals. They can make your life’s savings disappear in an instant.
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Make sure the investment professional and her firm are registered
Make sure the investment professional and her firm are registered with the SEC and licensed to do business in your state. And find out from your state’s securities regulator whether the investment professional or her firm have ever been disciplined, or whether they have any complaints against them. You’ll find contact information for securities regulators in the U.S. by visiting the website of the North American Securities Administrators Association (NASAA) or by calling (202) 737-0900. Our publication “Check out Brokers and Advisors” will show you how to research a financial professional.
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Immediately question any transaction or entry that you do not understand or did not authorize
If something is wrong like you see a mistake in your account, Act quickly. Immediately question any transaction or entry that you do not understand or did not authorize. Don't be timid or ashamed to complain.
If you can't resolve the problem with your broker or you believe your broker engaged in unauthorized transactions or other serious misconduct, report the matter to the firm's management or compliance department in writing.
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FINRA investigates complaints against brokerage firms.
FINRA investigates complaints against brokerage firms. FINRA and it's employees are empowered to take disciplinary actions against brokers and their firms. Sanctions may include fines, suspensions, a bar from the securities industry or other appropriate sanctions.You Should have a Lawyer to Represent You interests.
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