Investors Face Tough Duel When Fighting Brokers
As my Aunt Betty once told me, it's only when the rinse cycle begins that you see how dirty the laundry really was.
With the market still off more than 40% from its peak in 2007, investors are examining how their portfolios ended up so filthy -- and blaming brokers. Through March 31, investors filed 1,264 arbitration cases with the Financial Industry Regulatory Authority, or Finra, up 114% from the year-earlier period.
Many will walk away disappointed.
If your broker has lost your money, it may not really be lost. In some cases, arbitration is possible. WSJ's Jason Zweig explains the recourse investors have if they feel their broker's specific advice went against their risk profile, best interests or instructions.
With rare exceptions, when you sign a brokerage-account application you also sign away your rights to sue the broker or the firm for any bad advice they might give you. Instead, you must settle any dispute through the arbitration system run by Finra, which is funded by the brokerage industry.
http://online.wsj.com/article/SB123939571440409313.html
With the market still off more than 40% from its peak in 2007, investors are examining how their portfolios ended up so filthy -- and blaming brokers. Through March 31, investors filed 1,264 arbitration cases with the Financial Industry Regulatory Authority, or Finra, up 114% from the year-earlier period.
Many will walk away disappointed.
If your broker has lost your money, it may not really be lost. In some cases, arbitration is possible. WSJ's Jason Zweig explains the recourse investors have if they feel their broker's specific advice went against their risk profile, best interests or instructions.
With rare exceptions, when you sign a brokerage-account application you also sign away your rights to sue the broker or the firm for any bad advice they might give you. Instead, you must settle any dispute through the arbitration system run by Finra, which is funded by the brokerage industry.
