Whether you work with a broker or adviser or
you trade on your own, you should always monitor your investments. By keeping an eye on your investment portfolio, you can prevent minor
mistakes from turning into big problems. You can protect yourself by taking the following steps:
Read and keep all documents that you receive from your broker, mutual fund or
investment adviser. Check to make sure your confirmations and account statements are accurate.
Keep good notes of communications with your broker or adviser. Taking notes when
you're talking to your broker or adviser will help if there is a problem.
Get all confirmations and account statements sent directly to you. If you can't look
after your own investments, get copies of these documents sent to someone you trust, such as a family member, lawyer or accountant
so that there is always a pair of independent eyes looking after you.
If you don't get account statements or confirmations, follow up. You have a right to
this information. If you are not receiving these documents on a regular basis, that could be a sign of trouble.
Ask questions about any information you receive about your investments. If you don't
understand something, ask questions. If investments that you did not authorize appear on your confirmations or account statements,
contact your broker or adviser at once. Don't wait to see how the investments perform.
Even if you don't trade online, consider getting online access to your account.
Online access to your account allows you to review your account whenever you want. You can verify information that you received
from your broker or adviser or in your confirmations or account statements. You also may be able to request that your
confirmations and account statements be sent to you via email.
Do not make checks or other payments payable to your broker, adviser or another individual
for an investment. In most cases, money should only be sent to your brokerage firm, its clearing firm, or another financial
Meet with your broker and visit the firm, if possible. Investments are a major
financial undertaking and should be afforded the same degree of investigation and caution as any other major purchase you might
Conduct independent research on your investments. Ideally, you should independently
verify information by thoroughly reading prospectuses, research reports, offering materials, annual reports (Form 10-K), quarterly
reports (Form 10-Q), and other filings that a company makes with the SEC. SEC filings, such as Forms 10-K and 10-Q, can be
accessed on the SEC Web site.
Periodically review your portfolio. Make sure the securities in your account still
meet your investment objectives. Also, make sure you understand and are comfortable with the risks, costs, and liquidity of your
investments. As part of this review, you may want to check the information that is on file at your brokerage firm regarding your
accounts, such as new account agreements, margin account agreements, option account agreements, discretionary account agreements,
and any correspondence to you. You have a right to know what is on file about you and the firm's records must accurately reflect
important information about you such as your age, income, net worth, financial status, long-term goals, and investment
What to Do If You Have a Problem
If you believe you have been wronged or see a mistake in your account, act quickly. Immediately question any transaction or entry
that you do not understand or did not authorize. Don't be timid or ashamed to complain. The securities industry needs your help so it
can operate successfully. Here are the steps you should take:
If you think it's a minor mistake, talk to your broker. This may be the fastest way to resolve the problem.
If you can't resolve the problem with your broker or you believe your broker engaged in unauthorized transactions or other
serious misconduct, report the matter to the firm's management or compliance department in writing.
If you and your firm still can't resolve the problem, contact FINRA. You can file a complaint using their complaint form. If
you are seeking to recover money, you may want to consider arbitration or mediation.