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Investments - Private

A Broker’s Personal Email ……. Out of Your Mind

January 6, 2020

by Howard Haykin



From time to time, brokers alert some customers to ‘great’ investment opportunities that are not offered by their broker-dealers. And they do so through personal email accounts. How intimate. HOW SUSPICIOUS!



It’s OKAY for a broker, who’s also a friend, to use person email when writing about strictly personal matters. However, it’s NOT OKAY for that broker to cross the line and use personal email for “talking” about business or business opportunities. Business matters must be conducted through the broker-dealer’s web site or email system - - - with few exceptions.



OUT OF SIGHT, OUT OF MIND, ...    You’ve got to be OUT OF YOUR MIND to do business that’s initiated or conducted through a broker’s personal email - unless you are prepared (and knowledgeable enough) to conduct independent due diligence on investment opportunities - which most people are not.


Remember, when you signed up with a broker, you signed up with a complete brokerage team - a line of defense, a extra set of eyes and ears - that included bankers, analysts, financial product experts, compliance personnel and supervisors. To secretly deal directly with your broker means you have essentially thrown away your defenses - i.e., disregarded an infrastructure that is designed to protect you and other customers of the firm.


How so? How can you know if the broker’s information is complete and accurate, or whether it’s been vetted by experts. Additionally, how will you judge whether the promoted financial product adequately and suitably reflects your investment profile, financial needs and risk comfort levels.


Best advice:  Stay above board, and only deal with brokers who operate within the confines of their firms. Better to be safer than sorry.