📢 Speaking Up: Reporting Errors or Misconduct by a Financial Advisor

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If you or someone you know has been sold investments without proper disclosures, received unsuitable advice, or suffered financial harm because of an advisor’s actions, it’s important to know you have options.

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Staying silent might feel easier in the short term, but speaking up can protect both you and others in the future.

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👣 Here are some steps to consider:

• Address it directly – If appropriate, contact the financial advisor or someone else at their firm (such as a manager or compliance officer) to share your concerns. Sometimes the issue can be resolved without escalation.

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• Consult an attorney – Look for one who specializes in representing investors who may have been harmed by an advisor.

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• File a formal complaint –
  • FINRA – File a Complaint
    
    • Who it covers: Broker-dealers and registered representatives (stockbrokers).
    • ‍When to use it:
      • You bought or sold securities through a broker and suffered losses due to misconduct, fraud, or misrepresentation.
      • You received unsuitable investment advice.
      • You experienced violations of brokerage rules or regulations.
      How it helps: FINRA can investigate broker misconduct, enforce rules, and sometimes mediate disputes.
  • SEC – Investor Complaint Form
    
    • Who it covers: Investment advisors registered with the SEC, publicly traded companies, and securities markets.
    • ‍When to use it:
      • You were harmed by an investment advisor who is registered with the SEC.
      • You notice securities fraud, insider trading, or violations of federal securities laws.
      How it helps: The SEC can investigate, take enforcement actions, and refer cases to criminal authorities if needed.
  • CFP Board – File a Complaint
    
    • Who it covers: CFP® professionals.
    • When to use it:
      • Your CFP® certificant violated ethical or professional standards, such as conflicts of interest, misleading advice, or failing to act in your best interest.
      How it helps: The CFP Board can discipline certificants, including revoking their certification or issuing sanctions.
  • CFA Institute – Report Misconduct
    
    • Who it covers: Chartered Financial Analysts (CFAs).
    • ‍When to use it:
      • A CFA member violated the CFA Institute Code of Ethics or Standards of Professional Conduct.
      • This usually involves integrity, professionalism, or duties to clients, employers, or the public.
      How it helps: CFA Institute can censure members, suspend or revoke membership, and make findings public.

Even if you think it’s not worth the effort, remember - your action could prevent someone else from experiencing the same issue.

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🎯 Quick rule of thumb:

• Broker/Stock-Related Issue → FINRA
• Registered Investment Advisor (RIA)/Fraud → SEC
• Certified Financial Planner (CFP) Professional Ethical Breach → CFP Board
• Chartered Financial Analyst (CFA) Ethical Breach → CFA Institute

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📄 A Quick Note on E&O Insurance

As a financial advisor, I carry Errors & Omissions (E&O) insurance. This is professional liability coverage that protects both me and my clients if an error, omission, or miscommunication causes financial harm.

E&O typically covers:

• Negligence – for example, missing a deadline or making an administrative error.
• Misrepresentation – giving inaccurate information by mistake.
• Breach of fiduciary duty – not acting in the client’s best interest.
• Administrative mistakes – such as incorrect paperwork or account setup.

It pays for legal defense costs and potential settlements - important because even unfounded claims can be expensive to address.

It does not cover intentional wrongdoing, criminal acts, or normal market losses that aren’t tied to an actual error.

Think of it as a safety net: it helps ensure that if something does go wrong, there are resources to make it right.

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🎯 Final Thought

Check if your financial advisor has any complaints or disclosures. If so, ask them for more context and how they're preventing it from happening again.

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👀 What Caught My Eye

The Tim Tebow Foundation and many local communities put on an extraordinary event called Night to Shine.

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“Night to Shine is an unforgettable prom night experience, centered on God’s love, for people with special needs, ages 14 and older.”

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After participating as a volunteer for this event, it was amazing to see how the simple things in life bring so much joy!

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“The two most important days in your life are the day you are born and the day you find out why” - Mark Twain

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Ready to Take Off?

📩 Have a financial question? Visit The Financial Takeoff and our Ask a Question page.

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🚀 Want to explore working together? Schedule your Initial Collaboration meeting to see what’s possible with your financial planning. We look forward to meeting you!

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Life is short and time is precious. Thanks for taking yours to read this and I hope to be a part of your Financial Takeoff!

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Disclaimer: This is just for informational purposes and should not be used or viewed as tax, legal, or financial advice. Work with your tax professional, legal professional, and financial planner to evaluate which strategies would be the best for your situation.

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