Bizzare Client Walk-In

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Oct 23, 2008 2:34 pm

We just had an elderly gentleman walk-in today whose broker (an LPL guy) was terminated for
a pending "unsuitable investment" case against him.  Client is not the instigator.  The
broker's WEBCRD shows this just happened 3 weeks ago, and he's already
found himself a new broker/dealer (why the hell would anyone hire this
asshole bad person with such a mark on his record?)

This broker flew the coop, and didn't even bother letting his clients know (LPL sent the letter explaining his termination).

I look at the client's statement, and what's he invested in?

Gold, Emerging markets, Financial Services, and International REITs.  Aggressive Growth Objective.  He's lost a little bit of money this year. 

"Unsuitable Investment" doesn't even begin to describe the situation. 

Oct 23, 2008 2:38 pm
gvf:

We just had an elderly gentleman walk-in today whose broker (an LPL guy) was terminated for a pending "unsuitable investment" case against him.  The broker's WEBCRD shows this just happened 3 weeks ago, and he's already found himself a new broker/dealer (why the hell would anyone hire this asshole?)

This broker flew the coop, and didn't even bother letting his clients know (LPL sent the letter explaining his termination).

I look at the client's statement, and what's he invested in?

Gold, Emerging markets, Financial Services, and International REITs.  Aggressive Growth Objective.  He's lost a little bit of money this year. 

"Unsuitable Investment" doesn't even begin to describe the situation. 


Yeah, I had a guy walk in a couple months ago, which as an indy, is very rare.  Signed the ACATs for his $1.5MM on Monday.


You stick around long enough and just about anything can happen.


What do you figure this guy is down YTD?

Oct 23, 2008 2:48 pm

GVP,

 
What makes the investments unsuitable?
 
How do you know that he didn't inform his clients?
 
Why is the guy an asshole?
 
Why would anyone accept a client who has a case against his previous rep?
Oct 23, 2008 3:04 pm

Based upon my conversation with the client, the investments are unsuitable. 

Based upon my conversation with the client, the broker never contacted him.

Based upon my conversation with the client, previous broker is an asshole. 

Client is not the instigator in the pending case.  Though he may add to it. 

Oct 23, 2008 3:10 pm

gvp, understand that my questions are simply based upon what you posted.

Oct 23, 2008 8:34 pm

The investments match the objective, not that it matters I guess.

Oct 23, 2008 8:58 pm

broker probably is an ass, but be careful of a new complaining client, that is focused on performance on a portfolio that he would have approved at some point.  possible he changed his risk tolerance with the recent crappy market and was aggressive 9 months ago.   Chances are he'll be complaining if the market ever bounces back up that he's under performing. 

Oct 24, 2008 6:44 am

The investments match the objective, not that it matters I guess.

 
I think that it matters a lot.  It tells me one of three possible things.
 
1) The objective was wrong.
2) The client has money elsewhere. (This is $100,000 of his $1,000,000 portfolio with the rest of it sitting in CDs.)
3) The money isn't for him.  (He wants this money to fund the college education of his yet to be born great grand kid.)
 
I'll guess that it's #1 in this case since GVP said that he knows that the sale was unsuitable.