Securities Fraud Lawyers Blog
Many passive investors are happy just leaving their investments at the hands of their brokerage firms. Many investors opt review brokerage activity via a monthly overview statement rather than from a hands-on approach. Broker-dealers handling investment accounts are free to make most decisions on quantity and frequency of investment securities.
Although ostensibly broker-dealers must have the investor’s interests at heart, some may take advantage of the lack of oversight from the investor.
The Securities and Exchange Commission (SEC) warns that, in some cases, investors have encountered excessive fees due to sharp increases in brokerage activity on investment accounts.