I recently discovered a problem and wanted input form other wirehouse FA's.
Recently my firm charged an account an annual fee of $60. The account had just been closed because one of the 2 trustees had died and we needed to change the tax id to the surviving spouses. This account held about 20k of mutual funds and had somehow been reassigned to me.
I never recieved any notice of a fee being charged and the account held a debit balance since October of $60.00.
Low and behold on Monday my commission run had a write off of $60. And you guessed it the firm couldn't collect the annual fee so somehow they think it's my responsibility.
My Manager and Division Manager agree with me that I shouldn't be responsible for a debit that I didn't create.
We are being told it can not be reversed or corrected now and although the account has assets they can't go back and deduct the fee from the client. My Division Manager assured me that he will get me the money back from the division or the office, probably as an additional expense allowance.
My problem here isn't the $60, it's how in the world can we be responsible for a debit balance that we didn't create? My fear is the firm creates some other fee for accounts and multiplying this situation costing money that we had no control over.
I spoke to an attorney today that specializes in securities law and his firm is a prominent labor laws group. His reaction was this is absolutely illegal and he is organizing a class action group to see if there is any merit in pursuing the legality of firms being able to debit FA commision accounts for items that were not controlled by the FA.
Any thoughts or experiences are appreciated.