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Sep 21, 2005 12:55 am
I have recieved my first complaint:( It is scheduled for arbitration later this year. The case appears open and shut to me, client asked for a portfolio of certain investments, and I had my home office put together a proposal to meet his requirements. He picked which he liked and purchased. When things went south, I suggested sells, as did my firm publicly on several invetments. He did not act, and have written documentation of conversations as well as copies of reports and letters suggesting the same. Anyway, it appears we will go to arbitration, however who knows the firm may settle. I AM NOT named in the suit it is the client v Firm in the claim. I feel I did nothing wrong, in fact went above and beyond to try to get him out before things went bad. I have two questions 1. If the firm settles, or we lose arbitration, can I still be on the hook for a portion of the costs. i have never seen anything in writing saying I should be responsible, however i know most brokers are requires to pay a portion which I think is rediculous unless it was blatently their fault. 2. Since the suit names the cliebt v. the firm if we lose/settle will it still appear on my public record? 3. Shouls I obtain my own atty in the event we lose/settle so I have someone to argue my point to not be required to pay any $$ 4. If I am required to pay, if I leave the firm can they come after me for any $$ or is it in violation of any NASD regulation.   Any help is appreciated.
Sep 21, 2005 4:48 am

Check your E&O insurance (deductible).  I would think you might want your own ATTY.  If i were you i would Pm rrbdlawyer and get his opinion.  Bill will lead you in the right direction. 

Sep 21, 2005 5:10 am

I work for a wirehouse hence no seperate E&O

Sep 22, 2005 4:19 am

If your firm is of the opinion that you did nothing wrong, then I doubt they will make you pay it.