How to File a Complaint Against Your Financial Advisor
You ever thought that your financial advisor cared more about his commission than you? Sometimes it happens. You need to do something if your advisor you believe has misled you. This is how you can go about doing it – more bonuses.
Gather evidence. It’s important to have documents, emails or notes of meetings. As a detective, you need to piece together the clues. You will have a stronger case if you collect more information.
The next step is to speak directly with your advisor. It’s possible that miscommunications can be resolved with a quick conversation. Let them explain or fix the issue. It’s important to have a Plan B in place if you are ignored or given the runaround.
When talking with the company doesn’t help, you can write them a formal written complaint. Clearly and succinctly describe what occurred, your frustration, and the resolution that you are seeking. Please keep your original documents safe, but you can attach copies.
If you are sending the letter by certified mail, it is best to send it directly to someone who has authority. This could be a higher-up in management or the department of compliance. It’s also a good idea to send the letter certified mail so that it is received and they can’t make any claims.
If you don’t get any results from this, contact regulatory bodies such as FINRA (Financial Industry Regulatory Authority), or SEC (Securities and Exchange Commission). These groups supervise advisors, and they have complaint mechanisms.
You can file a complaint with FINRA by visiting their website. Fill out the online form. Your advisor’s name and details of your grievance will be required. You may be asked for further documentation at a later date.
If you have questions about investment fraud, or any other misconduct that is serious, contact the SEC’s Office of Investor Education and Advocacy. They have information on their website about how to submit complaints either electronically or by mail.
You can also contact state securities regulators. The state securities regulators oversee financial advisors in each state. Find your state agency online. Many have easy processes to file complaints.
You should also consider industry associations, such as CFP Board. These organizations handle complaints against members and are a great resource.
Legal action may be required if you lose a significant amount of money as a result of poor advice or negligence. You can consult a securities lawyer who will guide you in arbitration and court proceedings, if necessary.
Throughout the process, make sure to keep track of each step. Write down who you talked with and what letters were sent. And follow up until your problem is resolved.
It is important to remember that patience will pay off. This can be a lengthy process, but it pays in the long run.
Last but not least, and this may seem obvious, it’s worth repeating: do thorough research the next time you need to choose an advisor! You can check online for reviews, verify the credentials and even ask your friends or family to recommend someone.
You now have a plan to use when financial advisors fail you. Keep your eyes open & guard those dollars you’ve worked so hard to earn!