Investor Bill of Rights 6, 7 and 8

Investor Bill of RightsContinuing the series on the North American Securities Administrators Association (NASAA), Investor Bill of Rights, what follows is “Right” number 6, 7 and 8 along with my comments:

Investor Right #6) Understand the terms and conditions of transactions you undertake.

Comment: Read all documents, including confirmations, a prospectus, monthly statements and any other item sent by the brokerage firms. Investors have a right to know what is sent to them and to understand the meaning of every obligation they have to the brokerage firm and every obligation which is owed to the investor. Don’t be victimized because you trusted the broker to act in your best interest.

Investor Right #7) Access your funds in a timely manner and receive information about any restrictions or limitations on access.

Comment: If you ever have a problem accessing your funds, ask to speak to a supervisor immediately.  If you speak to a supervisor, be sure you take notes of the conversation.  Then date, sign and keep your notes.  Few, if any, investors ever do this, but this step could someday save your retirement or your financial viability.

Investor Right #8) Discuss account problems with the branch manager or compliance department of the firm and receive prompt attention to, and fair consideration, of your concerns.

Comment: Develop a relationship with the individual who supervises the broker(s) assigned to your account.  Feel free to contact this person directly.  If your broker objects to your request to meet and know these people, consider that to be a warning signal and move your account immediately.

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