My father and I have the same broker and he originally setup the account for me but his name is no longer on the account. If so, do I have any recourse against the brokerage?
2006-12-27 01:12:52 · 15 answers · asked by techengr36 2 in Business & Finance ➔ Investing
It is illegal. If this is stockbroker you may file complaint at NASD, if futures broker - go to NFA. This is disciplinary action only and does not exclude possible legal action.
2006-12-27 01:34:39 · answer #1 · answered by efpol2000 2 · 2⤊ 0⤋
How well are your investments performing? That will determine whether you want to keep the broker or not.
1. Investments not performing as expected: Open a discount brokerage account and transfer all of the investments to the new account. You are in a full-service stockbroker setup which has higher expenses.
2. Your investments and expenses are doing OK. Speak to the broker first, then the brokerage manager and ask them why your father is being informed of your transactions. If you don't like their answer, see option 1 above.
2006-12-27 01:20:09 · answer #2 · answered by Thomas K 6 · 1⤊ 0⤋
It is possible that the broker is still under the impression that our father has authority to obtain information about your account since you say that originally your father set up the a/c with you. He might not have noticed the change in the account operation.
While this could be verified, I think that your broker ought not to have divulged your transactions to anyone else, including your father. You need to have a talk with the firm and clear the matter.
If no damage has been done to your personal credibility due to this indiscretion of the broker, maybe the matter may be allowed to rest there.
2006-12-27 01:36:59 · answer #3 · answered by greenhorn 7 · 0⤊ 0⤋
Your broker might be concerned for your well being. Have you been making speculative trades?
Your best recourse if you are concerned about that is to move your account to another broker. An on line broker will not know your father from anyone else and most likely will not be too concerned with your financial well being either.
2006-12-27 01:34:13 · answer #4 · answered by Anonymous · 0⤊ 0⤋
You may want to check to see if he is has 'power of attorney' privileges on your account. If he does, he can not only be made aware of your transactions but also make transactions on your behalf without written permission. Check to make sure. If he doesn't then yes, they broke the law. If this is the case, ask them to stop. If they do not, it seems easier to just pull your money and put it in another brokerage.
2006-12-27 05:32:32 · answer #5 · answered by Ryan W 2 · 0⤊ 0⤋
The SEC would be the best place to go to find out about the legal issues involved here. Your Broker has definetely shown lack of good judgement in revealing details of your investments to your father.
2006-12-27 01:17:55 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Unethical yes, advise the broker not discuss your transactions with anyone or you will find another broker.
2006-12-27 01:16:43 · answer #7 · answered by tman 5 · 2⤊ 0⤋
My gut reaction is that the broker has no right to do that and may have broken the law. Would he have told a total stranger? Probably not, so what gives him the right to tell your father. I would confront him or go straight to his boss.
2006-12-27 01:15:53 · answer #8 · answered by poohb2878 6 · 1⤊ 0⤋
If you are a minor, no.
If you are over 18, and have not given you father such rights, your broker is acting unethically, and illegally.
2006-12-27 02:54:24 · answer #9 · answered by myersei 3 · 0⤊ 0⤋
the issue here is that its more of a family thing considering the fact that you both were operating a joint account before...its illegal going by the book, but your father is only concerned on the happenings..
2006-12-27 01:17:02 · answer #10 · answered by ceaser 2 · 0⤊ 0⤋