15 years in business... Legal question

Thanks, everyone, for the input. Well, doesn't sound good for me, then.

Can you sue for defamation and keep your job?

1) The amount of loss is under $15k but the client claims it's $16k. Demonstrably false.

2) It's a brokerage account, holding assets I did not buy for them. It's not an unsuitable recommendation; I didn't recommend the bonds.

3) I have on record where I told this person "Either sell the bonds now, right now, at $770, or be ready for further volatility. This is not going to be easy" They sold at 50 cents on the dollar, months after getting a letter from me, saying same.

At the crux is whether it's even definable as an unsuitable recommendation. If it's a SERVICE issue, i.e. why didn't I call them every day to tell them the new price of the bonds, then it's not reportable. I don't know what the rule is for under $15k right now. I have read conflicting statements on where we are as of 2010.

My compliance person says it's a service issue, and posted it to Legal that way. We shall see.

Well, no, I understand the merit part, but the straw that my compliance team is hanging onto is that it was a brokerage account, not being paid for advice, in other words, and I didn't make an unsuitable recco, since I didn't sell the bond. It's like complaining that E*TRADE didn't call you to tell you the bond you bought, unsolicited, had dropped.

Like I said, we'll see. Clearly, I want to believe they're right and that I'll be alright :) Doesn't help that I knew this woman was a bad person, and I have plenty of business. I should have fired her years ago. She's a liar and a nasty person, period. She took up scads of time and was a soul sucker, and being a professional for 6 years with her didn't stop her from turning into a problem when it suited her.

Careful Investor wrote: Well, no, I understand the merit part, but the straw that my compliance team is hanging onto is that it was a brokerage account, not being paid for advice, in other words, and I didn't make an unsuitable recco, since I didn't sell the bond. It's like complaining that E*TRADE didn't call you to tell you the bond you bought, unsolicited, had dropped. Like I said, we'll see. Clearly, I want to believe they're right and that I'll be alright :) Doesn't help that I knew this woman was a bad person, and I have plenty of business. I should have fired her years ago. She's a liar and a nasty person, period. She took up scads of time and was a soul sucker, and being a professional for 6 years with her didn't stop her from turning into a problem when it suited her.

It is likely the claim will be dismissed and found to be without merit, but the complaint will still be on your record.

I have never had a prospect or client even mention Broker Check.

Beginning to think RIA maybe the only way to avoid FINRA...for now.

City1134 wrote: helado wrote: I have never had a prospect or client even mention Broker Check. I doubt that hardly any of then know and off the ones that do, the ones that actually read everything,I'm guessing you're looking at a pretty small group of people. Just another reason I like c shares in brokerage over advisory.

under_complicated wrote: Yeah but it's on the disclosures (brochure aupplement/ADV) you give with every advisory account you open. If they sift through there and look at it it could be an issue.

it depends on the type or $ amount of the complaint. My 1complaint doesnt show on my adv2b but it does on brokercheck.

Yeah my favorite Broker check is still Suze Ormond. Especially her response. Of that doesn't prove she's a hacktthen I have no idea what will.

under_complicated wrote: Yeah my favorite Broker check is still Suze Ormond. Especially her response. Of that doesn't prove she's a hacktthen I have no idea what will.