A Guide to Filing a Complaint against Your Financial Advisor

Imagine this: you’ve trusted your hard-earned cash to a financial adviser, only to discover that they have been playing fast and loose when it comes to your investments. You’re like a parent who finds out that the babysitter is letting their kids watch horror films all night. What should you do? What to do when your financial adviser goes rogue.

Gather your evidence first. Document every interaction, transaction and advice you receive. You can use emails, statements or contracts to paint a clear picture. It is important to do this because you cannot just walk in and wave your arms at a regulatory office.

The next step is to speak directly with the advisor. It’s possible that it was a simple misunderstanding or honest mistake. You can clear up the situation with a simple conversation faster than you could say “compound interests.” If they avoid your questions or give you the runaround then it’s time for a confrontation.

If you can’t resolve the issue by talking, then file a formal complaint with their company. Each advisory firm has an internal compliance department that is designed to handle these situations. Contact them, and explain your situation succinctly yet thoroughly. Stick to the facts and timelines.

Still no resolution yet? It’s time to call in the big guns, regulatory bodies such as FINRA or SEC. You can file complaints online with these organizations about unethical or misconduct behavior.

FINRA deals with issues relating to brokers and brokerage companies, while the SEC is responsible for investment advisors and firms that are registered with them. Both websites provide guidance on which website to use if you are unsure.

Before rushing into court, let’s discuss arbitration and mediation. Arbitration is similar to court, but it’s less formal. It’s also quicker and binding. Mediation is a process where a neutral party helps both parties reach a settlement without making binding decisions.

If things start to get hairy, you might want to hire an attorney who specializes in securities law. Legal advice is expensive but necessary in some cases when the stakes are high.

Don’t forget state regulators either! Each state has a securities division which oversees the advisors within its borders. If federal complaints are unsuccessful, they can provide an alternative avenue to lodge a complaint.

Social media can be very effective in grabbing attention. However, it is important to tread carefully as if you make public accusations they could have a negative legal impact if they are not properly substantiated.

It’s important to remember that patience will be key in this process. This won’t happen overnight, unless everyone involved becomes super-efficient. Be persistent, but remain calm. Frustration will cloud your judgment as you travel down the winding path to justice (or resolution).

Shortly: Document everything from the very beginning; communicate directly and then escalate through appropriate channels; consider alternative dispute settlements before diving into legal battles. Use federal and state resources wisely, while keeping social media weapons as a last resort!

You have it! A straightforward guide seasoned with practical tips and seasoned wisdom gleaned from years of navigating murky financial waters filled with misadventures galore.

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