Complaint Letters to the Mutual Fund Managers

There will be times when you will not be satisfied with the services of your mutual fund stockbroker. Additionally, you may not be satisfied with a trade that either contradicts with the predetermined objectives or it represents an authorized activity. In both cases you have the right to write a complaint letter. Keep a copy of the letter so that you can prove that you have undertaken actions and objected to the specific trade.

The tone of the complaint letter should correspond to the seriousness of the addressed issue. If the problem persists after sending the letter to the broker, directly address his/her supervisor or the mutual fund brokerage firm's office manager.

You should keep a copy of the letters you have sent, in order to avoid the possibility of the broker denying that a complaint has ever been received. This will also assist you in further securities arbitration cases. The copy of the letter will serve you as a piece of evidence that the stated problem has occurred at the specified time. In turn it will discharge any denial on the part of the broker.

The copy of the complaint letter to the mutual fund brokerage firm's office manager is of extreme importance, since it will provide them with information on the performance of their employee. If the problem persists, the office manager will be able to put on a notice the broker. You may face the dilemma of getting your broker into trouble or getting your investments into further troubles. Don't hesitate and write the letter in a professional way to signify the importance of the problem. In this way the broker's supervisor will have the opportunity to solve the problem and undertake actions for the prevention of similar situations in the future. It is always better to write sooner and defend your investments, than wait for the broker to fix his mistake, which is sometimes highly unlikely, and suffer the potential losses.

Carefully analyze the essence of the problem in order not to end up complaining about unimportant problems that can be fixed from itself. Carefully think through what is in the core of the problem and see whether it is worth to unnecessary threaten the broker's career. But remember to always put your interests above that of the broker, because it is a matter of your hard-earned money.

If the problem is very serious, you have the right to ask for a meeting with the branch office manager so that the problem is clarified and potential solutions are offered. However, you should carefully plan in advance what you intend to say during the meeting (or when writing the complaint letter) since the mutual fund brokerage firm may turn your every word against you in further prosecutions.

As for the trading platform, we can highly recommend you try Zecco.
Zecco offers free stock/etf trading, no account minimum, trading community, real time quotes, and is also protected and insured against loss by SIPC. Opening a Zecco account to take advantage of $0 stock trades allows you to save money, which you can reinvest instead of paying brokerage commissions. These fees can make really big difference for long-term investing options like retirement plans (Traditional IRA, Roth IRA, Rollover IRA - 401k).

For the knowledge part we always recommend subscribing to the The Wall Street Journal (and save over 75%).

Bookmark this page (CTRL+D) :