Top 8 Investor Complaints

The investment world is pretty cut-and-dry; either you win, or you lose. Not much can be said for losing, after all, it’s part of the game. Usually when you lose out on an investment, it’s due to the fact that you didn’t account for certain risks. However, there are some instances beyond investors’ control that might derail an otherwise sound investment. These instances give rise to understandable investor complaints. Investor complaints pertain to how a transaction was executed. Whether it’s against a broker, investment advisor, transfer agent, or an entire brokerage firm, investor complaints focus on how an investment transaction is handled. Below are the most frequently recurring investor complaints as reported by the SEC’s Office of Investor Education and Advocacy (OIEA).

Top 8 Investor Complaints

• Order placement, execution and order confirmations
  • This may be three-in-one but essentially, this top complaint refers to how a transaction is handled
• Delivery of funds/securities
  • Can you imagine closing on an investment and never getting your end of the deal? Well that’s exactly where these investor complaints come from.
• Dividends
  • This could pertain to dividends being over-promised or an investor might never see their dividend
• Fees & Commissions
  • One of the most popular investor complaints; unearned commissions on transactions, misrepresented fees, hidden fees
• Inaccurate/Misleading Financial Disclosures
  • Whether it’s done intentionally or not, false financial disclosures contribute to some of the most frequent complaints
• Margins
• Excessive Trading
  • Unnecessary or non-requested trading
• Account Management
  • This pertains to all aspects of an investor’s account management and handling by a firm/broker, including: opening accounts, closing accounts, transferring accounts, and transferring and redeeming mutual funds.

Complaint Resolution

There are several measures that can be taken to resolve investor complaints.

• Investors can contact the OIEA with complaints. The OIEA then forwards them to the firm or entity from where the complaint originated.
• Investors can contact the SEC for potential action to be taken if foul-play or fraud is suspected
• Contact Savage Villoch Law to find out your investment-loss recovery options