FAQs LINKS

QUESTIONS AND ANSWERS ABOUT FINANCIAL PROFESSIONALS

<<< Back

 Can my registered financial professional trade securities in my account without my permission?

A: A registered financial professional can legally trade stocks in your account only if you have given him or her discretion to do so.  When setting up your account, did you sign a form giving the salesperson that authority?  If not, he or she cannot trade on your behalf.  Be sure you know what papers are included in your account file at your salesperson’s office.  If you did give permission and now want to revoke it, you can do so by sending a letter to your salesperson/adviser and to the firm for which the salesperson/adviser works.

<Top> 

Q: Is an investment adviser allowed to receive referral fees?

A: Investment advisers receive fees for providing investment advice to individuals and entities. Investment advisers cannot receive referral fees from attorneys in exchange for referring a client to an attorney. Under the administrative rules that apply to investment advisers, if your investment adviser is receiving a fee from anyone other than you in connection with investment advice that may be provided to you, the investment adviser must disclose that fact to you in writing before you enter into a contract for investment advisery services.

<Top>