BROWSE BY TOPIC
- Investments - Private
- Investor Protection
- Investments - Unsuitable
- Compliance Concepts
- Investments - Strategies
- Regulatory Sanctions
- Rules & Regulations
- Bad Advisors
- Bad Brokers
- Boiler Rooms
- Wall Street News
- Terminations/Cost Cutting
- General News
- Donald Trump & Co.
- Big Banks
Stories of Interest
- Sarah ten Siethoff is New Associate Director of SEC Investment Management Rulemaking Office
- Catherine Keating Appointed CEO of BNY Mellon Wealth Management
- Credit Suisse to Pay $47Mn to Resolve DOJ Asia Probe
- SEC Chair Clayton Goes 'Hat in Hand' Before Congress on 2019 Budget Request
- SEC's Opening Remarks to the Elder Justice Coordinating Council
- Massachusetts Jury Convicts CA Attorney of Securities Fraud
- Deutsche Bank Says 3 Senior Investment Bankers to Leave Firm
- World’s Biggest Hedge Fund Reportedly ‘Bearish On Financial Assets’
- SEC Fines Constant Contact, Popular Email Marketer, for Overstating Subscriber Numbers
- SocGen Agrees to Pay $1.3 Billion to End Libya, Libor Probes
- Cryptocurrency Exchange Bitfinex Briefly Halts Trading After Cyber Attack
- SEC Names Valerie Szczepanik Senior Advisor for Digital Assets and Innovation
- SEC Modernizes Delivery of Fund Reports, Seeks Public Feedback on Improving Fund Disclosure
- NYSE Says SEC Plan to Limit Exchange Rebates Would Hurt Investors
- Deutsche Bank faces another challenge with Fed stress test
- Former JPMorgan Broker Files racial discrimination suit against company
- $3.3Mn Winning Bid for Lunch with Warren Buffett
- Julie Erhardt is SEC's New Acting Chief Risk Officer
- Chyhe Becker is SEC's New Acting Chief Economist, Acting Director of Economic and Risk Analysis Division
- Getting a Handle on Virtual Currencies - FINRA
We seek to provide information, insights and direction that may enable the Financial Community to effectively and efficiently operate in a regulatory risk-free environment by curating content from all over the web.
Stay Informed with the latest fanancialish news.
NEWSLETTERS & ALERTS
Customer/Broker Relationships Matter
[Photo Image: Faceless / Venturebeat.com]
by Howard Haykin
The son, who had entered the securities industry in 2009, naturally continued those distributions, which he funded from the customer’s $200,000 money market fund holdings. After that position was depleted in June 2017, the broker began funding the $6,000 monthly distributions by selling off stocks in the account. In June 2018, Wells Fargo asked the broker whether the customer had authorized him to sell stocks in her account.
It turned out that the broker never received any such authorization ("LOA"). Nor had he ever spoken to, or otherwise communicated with, the customer - including any discussion about which stocks he should liquidate to fund her distributions. And wasn’t it a surprise to everyone when they learned the customer had died in April 2018, which means 3 equity sales occurred after her death.
CUSTOMER TAKE-AWAYS. Circumstances frequently change. Brokers pass away. Customers pass away. Financial markets change, as do individuals’ financial priorities. Which all add up to the critical nature of customer-broker relationships, which should never be taken for granted. So, if and when brokers fail to reach out to you, their customer, then go ahead and reach out to them – if only to confirm the status quo of the relationship. A CUSTOMER IN A FACELESS RELATIONSHIP IS SOON FORGOTTEN.