How to File a Stock Broker Complaint

Telephone
Computer
Printer

Things You'll Need

• If things have taken a turn for the worse in your relationship with your stock broker, you may need to file a complaint. A complaint may be resolved right away, or could eventually work its way up the stock brokerage's national office or federal regulatory agencies. Make sure to keep records and documents relating to the issue, and you may need to be persistent.

Instructions

Instructions

1. Call your broker and speak with him directly. Confront him with the substance of your complaint and ask how he will rectify the situation. If you are satisfied with his response, you can end your complaint there on the phone. If not, you can take further steps.

2. Speak with your broker's manager. If your broker could not or would not act on your complaint, your best bet for an in-house resolution of your complaint rests with the branch manager. The manager has more power to act on your behalf and will try to resolve the dispute before it escalates.

3. Send a letter or email to the branch manager after your phone call. Even if your complaint was resolved to your satisfaction, by sending a letter you are on record as having made your complaint, and the manager should send a written response back to you. Keep this documentation for your files. If the matter is not resolved to your satisfaction, you can continue pressing your case.

4. Contact the legal department of the brokerage firm. Once a dispute proceeds beyond an individual branch, firms are required to conduct thorough investigations and your case may be reviewed on a national level. Proceedings will become more formal and may end up in arbitration.

5. File a complaint directly with the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). You can either write a letter to these authorities, or file an online complaint. Be specific and provide concrete details and evidence of your complaint. Ask for a resolution.

6. Obtain legal counsel. If none of your actions have resolved the matter to your satisfaction, consult a securities lawyer. You may have a difficult case that needs professional representation, or you may be advised that your complaint has no merit.

Tips & Warnings

• Document everything about your relationship before you file a complaint. In order to resolve a dispute in your favor, it is important to have documents supporting your case.

• If you file a complaint against your broker, it can be hard if not impossible to maintain a working relationship. Make sure you are prepared to move your account to another broker or institution before you begin proceedings.

References

• SEC.gov: Investors Complaint Form

Resources

• FINRA.org: Investor Complaint Center
• SEC.gov: Investors Complaint Form