How To Handle Problems With Your Investment Professional

Inevitably if you are an investor problems will arise with your investments and/or your investment advisor. This seems to be a fact of life in the investment world.

Should you find yourself in this position the Securities and Exchange Commission says the best way to handle the issue is to act promptly. Investors have only a limited amunt of time to take legal action. This means the sooner you act the sooner you will experience a resolution.

They outline a 4 step course of action. These 4 steps are not all inclusive but they go a long way in solving the problem. These steps do not include the use of an atto
ey. Depending on the severity of the problem, skip these 4 steps and go directly to your atto
ey's office and lay the problem at his feet.

On the other hand, if the problem isn't as of yet too severe, these four steps may be just the ticket you need. Step one is to talk to your broker, counselor, advisor and explain the problem. Determine where the fault lies. Was it that communications were not clear? Refer to your notes to refresh your memory on what your advisor said or implied.

Step two is to go to the broker's manager should the broker not be able to solve the problem. This is a natural progression that helps lay the foundation for future litigation should litigation become necessary.

If neither the broker nor the manager provide remedy, go to step three and write the compliance department at the firm's main office/headquarters. Explain the problem clearly and how you want it resolved. Be sure to ask the compliance officer to respond to you within 30 days.

The final step, step four, is to send a copy of your letter to your state securities administrator or to the Office of Investor Education and Assistance at the Securities and Exchange Commission. Their address is easily available from the SEC website.

The SEC will research your complaint, contact the firm or person you have complained about and ask them to respond to your specific complaint or question. Sometimes the SEC involvement is all that is needed.

If the problem does not get resolved even with SEC intervention, you may have to contact your atto
ey. You may have to resort to court action, mediation or arbitration to receive remedy.

Regardless of your particular path, the above four steps should go a long way in helping you with any problem you may experience. Remember, it is your money and you are entitled to receive fair and equitable treatment.