Misconduct of CFP


G

grass

In Feb my planner was instructed to sell 5 off mutual funds and
purchase 5 new funds that I requested. He sold the 5 funds and bought
one fund I requested and 4 funds on his own in which he didn't tell me
about. I found out when I got my quarterly statement from the company
he works for.
If any, what type of action could I take to recover the lost that the 4

funds took that he bought without my knowledge.
Help would be appreciated,
Thank you
 
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C

Cal

you certainly have recourse through the NASD Resolution. I would
however contact an attorney before I proceed.
Cal Lester CLU
 
H

HW \Skip\ Weldon

you certainly have recourse through the NASD Resolution. I would
however contact an attorney before I proceed.
Cal Lester CLU
Request more info.
1. Approximately how much money is involved?
2. Does broker acknowledge he did not comply with your wishes, or is
he/she claiming a misunderstanding?
3. Have you given broker discretion in writing to buy/sell without
your approval?
4. What were the funds you requested, and what were the funds
purchased?


-HW "Skip" Weldon
Columbia, SC
 
M

Mechanics of Money Financial BBS

The answer partially depends on what type of "planner" you hired. If
you are working with a planner that is employed by a broker/dealer
(e.g., those that work for most banks and large "financial"
institutions), then you will first have to pursue an administrative
remedy with them (these types of firms have policies in place to deal
with these issues). If that fails then you can always seek a
administrative remedy (via the appropriate governing body -- which will
be the NASD and/or SEC and/or any body issuing a license for the
"planner" or his/her employer) or a damage award from the courts.

If the "planner" works for an independent registered investment advisor
(RIA) you might be able to forego the first option and proceed directly
with the second options.

It has been my experience that, assuming that the "planner" was at
fault, most "planning" firms pay to make these types of things go away
(as their business depends on people trusting in them).


Best of luck,



Gary Brolis
http://www.MechanicsofMoney.com
http://www.MechanocsofMoney.com/blog.php
 
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T

Tad Borek

grass said:
In Feb my planner was instructed to sell 5 off mutual funds and
purchase 5 new funds that I requested. He sold the 5 funds and bought
one fund I requested and 4 funds on his own in which he didn't tell me
about. I found out when I got my quarterly statement from the company
he works for.
If any, what type of action could I take to recover the lost that the 4
funds took that he bought without my knowledge.
Is the OP still around? There's a pretty wide range of answers here.

How bad was it? 4 completely different funds, or something more subtle
like different share classes of the same funds, or a second series of a
fund (because the first one had closed)?

Was there anything vague about your instructions? Did you leave any
discretion with the person placing the trades, or did you say "sell my
funds and place the proceeds into funds a, b, c, d, and e tomorrow"?

And have you tried resolving it with him yet?

-Tad
 

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