Written client complaint

2 replies [Last post]
madpablito's picture
Joined: 2009-08-02

One client had a market value reduction of 17% on one of the positions in his account and made a written complaint stating that he didn't understood the risks of the investments. The investment is paying dividends and is almost breakeven. He is requesting that the transaction is reversed and commissions refunded. He signed a document on the opening of the account that states that investments have risk and that it can be possible to loose money. How long will this complaint stay in my record? If it goes to arbitration and I win, will it stay in my U4? How future employment prospects see this kind of complaints? Is it normal? Thanks. 

Amber_M's picture
Joined: 2011-12-26

New FINRA rules keep it on the record for ten years. Whether you win or lose.

Sad but true.

SECLaw's picture
Joined: 2009-08-02

If the customer does nothing else, it will remain on your record for two years. If the customer starts an arbitration, it will remain on your record until you win, or settle for less than $15,000. If you lose, or settle for more, it will remain on your record forever.

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