as some do know, am in the process of fighting my broker over mis-information/rip-off and wanted to provide some info for others who may encounter problems with their brokers because doing nothing doesn't solve the issue.. seems that many brokers do not give correct information when asked the correct questions until after the fact, which is what happened with one of my stock purchases.. not to mention, many brokers seem to be manipulating stocks and restricting online ordering on stocks that are running while allowing online purchases of gray sheet stocks, which really should have online ordering restrictions in place etc..
filed a complaint with sec and this complaint forced my broker to respond to claim, which they had not done up until sec complaint.. just recently filed a complaint with finra along with signing up to undergo mediation, which is a step that you can do before arbitration or court proceedings and is claimed to have a very high success rate, and the best part of mediation is that it can be done in your area and forces all to come to you...
one thing that is very important to know is that you will need to have solid records, transaction records of stock involved, which you can print from your broker site... it is also good to keep some notes whenever you contact your broker or write everything down concerning any conversations asap... all correspondence to and from broker (letters sent and conversations) - names of all folks/titles concerned & dates of correspondence/conversations, along with a brief outline of what happened etc... as i recently discovered >> folks at brokerage will lie to cover their butts so good to have as much solid info as you can to counter/negate their bs...
SEC Complaint Center -
http://www.sec.gov/complaint/selectconduct.shtml
Direct link for FINRA Complaint Form -
http://www.finra.org/InvestorInforma...nter/index.htm
Direct Link for FINRA Arbitration or Meditation Form -
http://www.finra.org/ArbitrationMedi...tion/index.htm
portion of responce from sec after my complaint was filed...
STEPS FOR PURSUING A COMPLAINT
Know your legal rights
You should know your legal rights and be prepared to take action on your
own, even while waiting for the firm's response. Federal and state
securities laws allow you to start legal proceedings against those who may
be engaged in wrongdoing. If you believe the firm's response inaccurate or
incomplete, consider writing a second letter to the firm, laying out the
problems with the firm's response and including copies of documents that
support your views.
Act promptly
Time restrictions, called "statutes of limitations," require you to begin
legal action promptly. For example, the federal securities laws require you
to bring action within two years of the date you reasonably should have
discovered the wrongdoing, but no later than five years from the date it
occurred. If you sue any later, you may lose the right to recover.
Limitations vary from state to state and may differ depending on whether you
claim a violation of state law or federal law.
Use arbitration, if agreed to
When you opened your brokerage account, you probably agreed to use
arbitration (and only arbitration) to settle all disputes with your broker
or the firm. But even if you did not, you may choose to use arbitration to
settle disputes. If you use arbitration, arbitrators will apply either a
federal or state statute of limitations, depending on the nature of your
claim. You generally cannot pursue an issue through arbitration if it is
more than six years old. For older cases, you will probably want to consult
with an attorney. When deciding whether to arbitrate - or, if it is a
choice, to sue in court - bear in mind that if your broker or brokerage firm
goes out of business or declares bankruptcy, you might not be able to
recover your money - even if the arbitrator or court rules in your favor.
Learn about low-cost arbitration
If you use NASD Dispute Resolution, Inc. and your claim is $25,000 or less,
you generally will not have to appear in person at a hearing and an
arbitrator will make a decision on your case by reviewing documents and
written descriptions of what happened from you and your broker. The New
York Stock Exchange also offers simplified arbitration for claims under
$25,000. Simplified arbitration can be a less costly alternative because
you typically do not have to travel to a hearing and appear in person to
give testimony and answer questions. You should carefully review the rules
governing simplified arbitration before filing a claim. To obtain
information about arbitration procedures, please go to:
http://www.finra.org/index.htm. Again, you should weigh the costs of arbitrating
against the likelihood of being able to collect any award,
especially if the brokerage firm has left the industry or gone bankrupt.
Firms that stay in business typically pay the arbitration awards levied
against them, but defunct firms may not.
Consider Mediation
Mediation is also an option you should consider before going to arbitration.
Mediation allows you to save time and money because it is quicker than
arbitration and voluntary. If you can't reach an agreement through
mediation, you can still go to arbitration. To learn about mediation,
please go to:
http://www.finra.org/index.htm.
If you decide to hire a lawyer and need help in finding one, please go to:
http://www.sec.gov/answers/lawref.htm.
Remember you do not have to have a lawyer to file an arbitration claim.
Remedies for Broker Complaints/Misconduct
Linear Mode
