According to a recent article by Jason Zweig of the Wall Street Journal, “If you get a ‘happiness” letter from your brokerage firm this time of year, you should be worried’.
We agree with that.
While they are nicknamed “happiness: letters they are really intended to help the firm and your broker minimize liability, a “CYA” , cover your rear, letter. They generally start off by thanking you for your business and then move into a discussion about how they have noticed that your trading has increased, you have suffered unusual losses or you have some concentrated positions in your account.
Brokers many times will tell the client receiving such a letter not to worry , it is ‘routine’ just sign and return. We do not suggest this. If you receive such a letter, we suggest you make a thorough review of your account for improprieties and consult with your accountant or a securities attorney to determine if there has been abuse to your account. By signing and returning the company may later argue that you authorized or ratified the improper trading.
If you have questions about the way your brokerage account is being handled or how you may be able to recover damages for losses, contact us to discuss your legal rights.
Rex Securities Law , with offices in Boca Raton, FL, and Austin, TX, provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.
Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.
Florida-561 391 1900