Online Complaint Center

Click a question below for details

When should you complain?
Where should you file a complaint?
How should you file a complaint?

WHEN SHOULD YOU COMPLAIN?

What should you do if you believe that you have a problem with or have been mistreated by your stockbroker, investment adviser or brokerage firm?

FRAUD. If you think that you’ve been cheated or otherwise taken advantage of by a financial professional, contact a regulatory organization or organizations immediately. Keep in mind that, in most cases, regulators will not be able to get your money back.

TRADING ERRORS AND OTHER PROBLEMS. Complain directly to the brokerage or investment advisory firm in writing and keep a copy for your own records. First communicate your concerns to your broker, then to the manager of your broker’s or advisor’s office. Keep a copy of the complaint in your records. Follow-up immediately if you do not receive a satisfactory response to your complaint. If you get no response to your letter or you feel like the firm is stalling you should complaint to the appropriate regulatory agency or agencies.

WHERE SHOULD YOU FILE A COMPLAINT?

First complain to the state securities agency in the state where your live. You can also complain to one of the following two organizations: the U.S. Securities and Exchange Commission (SEC) or the National Association of Securities Dealers (NASD). Why not complain to both NASD and the SEC? The following explains which agency you should contact and when.

Your State Securities Agency

Every state has a regulatory agency that is in charge of grassroots consumer protection, including, in most cases, regulation of stockbrokers, investment advisors and brokerage firms. To find the state securities agency where you live, go to the North American Securities Administrators Association “Find a Regulator” page (http://www.nasaa.org/nasaa/abtnasaa/find_regulator.asp)and look up your state. Every state agency listed there has a phone number or email address that you can use to contact them.

National Association of Securities Dealers

The NASD is a federally chartered industry self regulatory organization (SRO) that oversees brokerage firms, stockbrokers and investment advisors. NASD is an enforcement organization that operates independently from the Nasdaq stock market. Who should file a NASD customer complaint? A customer complaint (https://www.nasdr.com/secure/complaints/ComplaintCenter.asp) may be filed by an investor, or a person acting on behalf of an investor, who feels that he or she has been dealt with improperly by a stockbroker, investment advisor or brokerage firm. A customer complaint will be most appropriate for individuals who been directly victimized by brokerage firm misconduct.

U.S. Securities and Exchange Commission

The primary mission of the U.S. Securities and Exchange Commission (SEC) is to protect investors and maintain the integrity of the securities markets. The SEC oversees the key participants in the securities world, including stock exchanges, broker-dealers, investment advisors, mutual funds, and public utility holding companies.

To file a complaint with the SEC, go to the Commission’s online complaint area (www.sec.gov/complaint.shtml) to find the form that makes the most sense for your case.

To forward investment-related spam (junk email) or copies of suspicious postings on stock market message boards, go to enforcement@sec.gov. Complaints about misconduct should be directed to the SEC’s online complaint form (same link as in previous bullet).

Are you an investor outside of the United States? While the jurisdiction of NASD ends with members of the National Association of Securities Dealers, the U.S. Securities and Exchange Commission deals with any firm that sells securities to U.S. investors, regardless of their location. The SEC Web site features a "warning" that is directed exclusively at foreign investors (http://www.sec.gov/investor/pubs/fleecing.htm).

Non-U.S. investors may be able to get more help by visiting the Web site of the International Organization of Securities Commissions (www.iosco.org) to determine which securities regulator outside of the United States is the right one to contact.

HOW SHOULD YOU FILE A COMPLAINT?

Regulators need details to help you. Accurate and complete information is crucial. Though you are not required to furnish any more information than you wish, the key information will include:

Your name, mail and email addresses, and telephone numbers.

The name, mail and email addresses, telephone numbers, and Web site (or email) address of any individual or company you mention in the complaint.

Specific details of who, what, when where and how you were defrauded or encountered problems. . Be as specific about what your broker told you about the investment as possible. It is best to tell your story in chronological order as possible.

Check with the agency where you are complaining to see if they have a specific complaint form. This may save you time later.

Brokerage Firm

Brokerage firms are licensed to buy and sell securities for clients and for their own accounts. Brokerage firms provide individual investors their link to the financial markets by employing brokers who carry out the investor’s order to buy or sell securities.

The firm may be a huge, corporation with hundreds of brokers, a small partnership with only one broker or any size in between. A brokerage firm could also be a full-service firm, a discount firm or somewhere in between. Typically, larger firms, and full-service firms, provide an increasing range of financial services, including financial planning, asset management, and educational programs. In addition, many maintain research departments for their own and their clients’ benefit. Other brokerage firms, such as online firms and discount firms, are increasingly providing their customers with a wealth of investment information on their websites and encouraging their customers to trade electronically.

An investor should note that while online and discount brokerage firms may charge lower commissions than full-service brokerage firms to execute their buy and sell orders, those firms are also less likely to provide the range of services mentioned above. This may not be an issue for many investors as extensive information and online account access are now readily available. The individual investors’ needs will dictate which services will be required.