An Advisor Refusing To Sell Investments

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Topic Author
Paisley
Posts: 77
Joined: Sun Apr 14, 2019 12:32 pm

An Advisor Refusing To Sell Investments

Post by Paisley » Sat May 11, 2019 12:34 pm

I know a colleague who is trying to sell investments and transfer the cash into a different firm. He existing advisor is refusing to sell the investments. Does anyone have any suggestions as to what he should do?

mhalley
Posts: 6856
Joined: Tue Nov 20, 2007 6:02 am

Re: An Advisor Refusing To Sell Investments

Post by mhalley » Sat May 11, 2019 12:37 pm

This is so egregious that I am flabbergasted. Does he have documentation of giving the order to sell? Does he have a boss he can escalate to?
Otherwise he can report him to the sec.
https://www.sec.gov/oiea/investor-alert ... aints.html
And his state security regulator
https://www.sec.gov/fast-answers/answer ... eghtm.html
Last edited by mhalley on Sat May 11, 2019 12:44 pm, edited 1 time in total.

mighty72
Moderator
Posts: 341
Joined: Fri May 04, 2018 11:22 pm
Location: Somewhere in the West

Re: An Advisor Refusing To Sell Investments

Post by mighty72 » Sat May 11, 2019 12:41 pm

Best way is to work with the firm you are transferring to. Every time I have moved my account, I got all the forms from the firm I was moving to and sent it to them. They deal with your current brokerage.

Also, I am sure the advisor can not refuse to sell. Tell him that you want him to put the refusal to sell in writing and let him know that you will complain to the relevant regulatory authority.

HomeStretch
Posts: 340
Joined: Thu Dec 27, 2018 3:06 pm

Re: An Advisor Refusing To Sell Investments

Post by HomeStretch » Sat May 11, 2019 12:46 pm

Suggestions:

Start a paper trail by documenting his request to old broker in writing via certified mail. I would also request no further trading activity or dividend reinvestment pending the transfer.

Have the broker he is moving to initiate the transfer of the funds in kind, if possible, to bypass selling at old broker.

Have a 3-way conversation with new and old broker to make it harder for the old broker to egregiously flout the request with a witness on the line.

bondsr4me
Posts: 1090
Joined: Fri Oct 18, 2013 7:08 am

Re: An Advisor Refusing To Sell Investments

Post by bondsr4me » Sat May 11, 2019 12:49 pm

Paisley wrote:
Sat May 11, 2019 12:34 pm
I know a colleague who is trying to sell investments and transfer the cash into a different firm. He existing advisor is refusing to sell the investments. Does anyone have any suggestions as to what he should do?
I would file a complaint withe FINRA.

This is absolutely ridiculous for any firm to do.

In the end, I would close the account.

User avatar
Wiggums
Posts: 807
Joined: Thu Jan 31, 2019 8:02 am

Re: An Advisor Refusing To Sell Investments

Post by Wiggums » Sat May 11, 2019 12:51 pm

mighty72 wrote:
Sat May 11, 2019 12:41 pm
Best way is to work with the firm you are transferring to. Every time I have moved my account, I got all the forms from the firm I was moving to and sent it to them. They deal with your current brokerage.

Also, I am sure the advisor can not refuse to sell. Tell him that you want him refusal to sell in writing and if let him know that you will complain to the relevant regulatory authority.
+1000

I agree. Let the company receiving the funds deal with your broker. Save any written documentation and keeps notes on any phone calls. Stay calm. This will get resolved.

User avatar
Stinky
Posts: 874
Joined: Mon Jun 12, 2017 11:38 am
Location: Sweet Home Alabama

Re: An Advisor Refusing To Sell Investments

Post by Stinky » Sat May 11, 2019 12:54 pm

Wiggums wrote:
Sat May 11, 2019 12:51 pm
mighty72 wrote:
Sat May 11, 2019 12:41 pm
Best way is to work with the firm you are transferring to. Every time I have moved my account, I got all the forms from the firm I was moving to and sent it to them. They deal with your current brokerage.

Also, I am sure the advisor can not refuse to sell. Tell him that you want him refusal to sell in writing and if let him know that you will complain to the relevant regulatory authority.
+1000

I agree. Let the company receiving the funds deal with your broker. Save any written documentation and keeps notes on any phone calls. Stay calm. This will get resolved.
Agreed. Be calm. This will get resolved, in pretty short order. Your friend will come out whole.

And tell your friend that this is the best possible reason to leave the current advisor. Tell your friend to never speak to this crook again.
It's a GREAT day to be alive - Travis Tritt

lkar
Posts: 59
Joined: Sat May 04, 2019 4:02 pm

Re: An Advisor Refusing To Sell Investments

Post by lkar » Sat May 11, 2019 1:01 pm

If the request is in writing he probably has a good case to be made whole if the value of the positions drop. Just document and he may have a de facto put.

User avatar
Phineas J. Whoopee
Posts: 8246
Joined: Sun Dec 18, 2011 6:18 pm

Re: An Advisor Refusing To Sell Investments

Post by Phineas J. Whoopee » Sat May 11, 2019 1:03 pm

I agree about making the arrangements with the receiving firm.

The mere mention of involving an attorney, sent in a factual and non-threatening physical letter to the CEO, CFO, and corporate Legal Counsel, probably would do the trick. You could also write to the Consumer Financial Protection Bureau and the Securities and Exchange Commission. Congressional representatives often are helpful toward their constituents, and your state legislature person might also want to get involved. In the end there's always the local news station if they have a regular segment about people being cheated.

If literally the adviser salesperson refuses to sell despite explicit, overt, written instructions from the owner of the assets, they may well end up with civil liability for any proven resulting losses.

PJW

User avatar
Watty
Posts: 15796
Joined: Wed Oct 10, 2007 3:55 pm

Re: An Advisor Refusing To Sell Investments

Post by Watty » Sat May 11, 2019 1:07 pm

Paisley wrote:
Sat May 11, 2019 12:34 pm
I know a colleague who is trying to sell investments and transfer the cash into a different firm. He existing advisor is refusing to sell the investments. Does anyone have any suggestions as to what he should do?
That is so wrong that I suspect that there is some information that is missing.

It could be something like he is trying to sell something like a non-traded REIT, MLP(master limited partnership) where there is not really any market for them, which is a good reason that you should not buy them. It is even possible that the money is in a trust. If he is older there could also be some question about if he is competent to make decisions.

If this is with one of the big name firms he should talk to a manager higher up in the company.

GrowthSeeker
Posts: 480
Joined: Tue May 15, 2018 10:14 pm

Re: An Advisor Refusing To Sell Investments

Post by GrowthSeeker » Sat May 11, 2019 1:12 pm

Just deal with the receiving firm. That may solve the entire problem. The only way it won't is if there is something in the account that won't transfer in kind. And there probably isn't anything in that category.
Just because you're paranoid doesn't mean they're NOT out to get you.

Topic Author
Paisley
Posts: 77
Joined: Sun Apr 14, 2019 12:32 pm

Re: An Advisor Refusing To Sell Investments

Post by Paisley » Sat May 11, 2019 2:25 pm

The advisor said that because the transfer is an "ACAT" transfer, his "hands were tied" and that the "receiving" firm must liquidate the mutual funds, not the "delivering" firm.
So, to see if his story was true, the guy I know called the "receiving" firm and they said that a receiving firm CANNOT liquidate investments in an ACAT transfer and that the "delivering" firm (the existing advisor where the mutual funds are held) MUST be the ones to do this. Just confirm this, he called the "delivering" firm's operations department where his investments are currently held and they agreed: the advisor from the delivering firm is the one who must sell the investments, the receiving firm cannot have them sold.
I found out that the advisor has been in the industry for 25 years. Obviously, he knows the ins and outs..

User avatar
Stinky
Posts: 874
Joined: Mon Jun 12, 2017 11:38 am
Location: Sweet Home Alabama

Re: An Advisor Refusing To Sell Investments

Post by Stinky » Sat May 11, 2019 2:31 pm

Paisley wrote:
Sat May 11, 2019 2:25 pm
The advisor said that because the transfer is an "ACAT" transfer, his "hands were tied" and that the "receiving" firm must liquidate the mutual funds, not the "delivering" firm.
So, to see if his story was true, the guy I know called the "receiving" firm and they said that a receiving firm CANNOT liquidate investments in an ACAT transfer and that the "delivering" firm (the existing advisor where the mutual funds are held) MUST be the ones to do this. Just confirm this, he called the "delivering" firm's operations department where his investments are currently held and they agreed: the advisor from the delivering firm is the one who must sell the investments, the receiving firm cannot have them sold.
I found out that the advisor has been in the industry for 25 years. Obviously, he knows the ins and outs..
Your “advisor” may “know the ins and outs”. But he doesn’t know his stuff. It sounds like the back offices of both existing and new firms disagree with him.

Leave your current advisor. Now.
It's a GREAT day to be alive - Travis Tritt

User avatar
Wiggums
Posts: 807
Joined: Thu Jan 31, 2019 8:02 am

Re: An Advisor Refusing To Sell Investments

Post by Wiggums » Sat May 11, 2019 2:35 pm

Paisley wrote:
Sat May 11, 2019 2:25 pm
The advisor said that because the transfer is an "ACAT" transfer, his "hands were tied" and that the "receiving" firm must liquidate the mutual funds, not the "delivering" firm.
So, to see if his story was true, the guy I know called the "receiving" firm and they said that a receiving firm CANNOT liquidate investments in an ACAT transfer and that the "delivering" firm (the existing advisor where the mutual funds are held) MUST be the ones to do this. Just confirm this, he called the "delivering" firm's operations department where his investments are currently held and they agreed: the advisor from the delivering firm is the one who must sell the investments, the receiving firm cannot have them sold.
I found out that the advisor has been in the industry for 25 years. Obviously, he knows the ins and outs..
The receiving broker has no access to your funds. You will be so happy when this is over. Yet another reason to manage your own funds!!!

adamthesmythe
Posts: 2687
Joined: Mon Sep 22, 2014 4:47 pm

Re: An Advisor Refusing To Sell Investments

Post by adamthesmythe » Sat May 11, 2019 2:46 pm

Watty wrote:
Sat May 11, 2019 1:07 pm
Paisley wrote:
Sat May 11, 2019 12:34 pm
I know a colleague who is trying to sell investments and transfer the cash into a different firm. He existing advisor is refusing to sell the investments. Does anyone have any suggestions as to what he should do?
That is so wrong that I suspect that there is some information that is missing.
Yeah, I rather think so.

User avatar
arcticpineapplecorp.
Posts: 4005
Joined: Tue Mar 06, 2012 9:22 pm

Re: An Advisor Refusing To Sell Investments

Post by arcticpineapplecorp. » Sat May 11, 2019 2:47 pm

Paisley wrote:
Sat May 11, 2019 2:25 pm
The advisor said that because the transfer is an "ACAT" transfer, his "hands were tied" and that the "receiving" firm must liquidate the mutual funds, not the "delivering" firm.
So, to see if his story was true, the guy I know called the "receiving" firm and they said that a receiving firm CANNOT liquidate investments in an ACAT transfer and that the "delivering" firm (the existing advisor where the mutual funds are held) MUST be the ones to do this. Just confirm this, he called the "delivering" firm's operations department where his investments are currently held and they agreed: the advisor from the delivering firm is the one who must sell the investments, the receiving firm cannot have them sold.
I found out that the advisor has been in the industry for 25 years. Obviously, he knows the ins and outs..
i'm confused. This whole thing makes it seem like your advisor has to do the liquidating and not only did the receiving firm confirm this, but the delivering firm (your advisor)'s own firm operation department confirmed this. So if everyone is saying your advisor has to be the one to liquidate (except him) then why do you say "he knows the ins and outs"? It seems to me that he doesn't know the ins and outs. He needs to liquidate and send to the receiving firm. As to why he's not, it sounds like because he's confused. I'd say you'd have to escalate this above him if he's refusing to do what his own operations department is saying he must do.

don't forget to check your guy at the sec.gov under adv part II (here: https://www.adviserinfo.sec.gov/IAPD/Default.aspx). Make sure he has no complaints filed against him already for similar offenses. If so, you should bring that up because he wouldn't want to add more claims against him. You also want to make sure he's even registered with the SEC.
"May you live as long as you want and never want as long as you live" -- Irish Blessing | "Invest we must" -- Jack Bogle

User avatar
J G Bankerton
Posts: 858
Joined: Thu Sep 14, 2017 3:30 pm

Re: An Advisor Refusing To Sell Investments

Post by J G Bankerton » Sat May 11, 2019 3:55 pm

Watty wrote:
Sat May 11, 2019 1:07 pm
Paisley wrote:
Sat May 11, 2019 12:34 pm
I know a colleague who is trying to sell investments and transfer the cash into a different firm. He existing advisor is refusing to sell the investments. Does anyone have any suggestions as to what he should do?
That is so wrong that I suspect that there is some information that is missing.

It could be a broker from Madoff Investments.

aristotelian
Posts: 5598
Joined: Wed Jan 11, 2017 8:05 pm

Re: An Advisor Refusing To Sell Investments

Post by aristotelian » Sat May 11, 2019 4:36 pm

Any chance it is an Annuity or specialized investment that has the funds legally tied up? If it is a regular investment account, he shouldnt need to contact the advisor.

Topic Author
Paisley
Posts: 77
Joined: Sun Apr 14, 2019 12:32 pm

Re: An Advisor Refusing To Sell Investments

Post by Paisley » Sat May 11, 2019 4:41 pm

They are mutual funds. I was just informed that the advisor says actually he can do it, but he is requiring a letter of instruction?!

Katietsu
Posts: 1941
Joined: Sun Sep 22, 2013 1:48 am

Re: An Advisor Refusing To Sell Investments

Post by Katietsu » Sat May 11, 2019 4:47 pm

I think there might be communication issues.

It is reasonable to require a letter of instruction.

The previous post was pretty confusing because you spoke of an ACATs transfer. This is where nothing is liquidated but instead the mutual fund is transferred to the new firm.

Anyway, glad there seems to be a plan in place. I would just suggest concentrating on clear use of proper terminology.

Topic Author
Paisley
Posts: 77
Joined: Sun Apr 14, 2019 12:32 pm

Re: An Advisor Refusing To Sell Investments

Post by Paisley » Sat May 11, 2019 4:59 pm

It is an ACAT transfer.

Topic Author
Paisley
Posts: 77
Joined: Sun Apr 14, 2019 12:32 pm

Re: An Advisor Refusing To Sell Investments

Post by Paisley » Sat May 11, 2019 5:04 pm

I would think that if there is a market loss, the advisor should be held responsible.

-ryan-
Posts: 43
Joined: Fri Mar 01, 2019 7:14 am

Re: An Advisor Refusing To Sell Investments

Post by -ryan- » Sat May 11, 2019 5:09 pm

I agree with other posters that this seems like confusion on the part of the client. The ACAT can be done before or after liquidating securities. Many people choose whether to liquidate before an ACAT or after based on which scenario will result in the lowest fees (aka: if the former vs. latter firm charges a higher fee to trade out of the funds).

It sounds to me like perhaps the client tried to email instructions to the (former) advisor, which the advisor cannot act upon. While some play it fast and loose if they have discretion over the account, it is against current industry regulations to process trade instructions received via email.

Anyway, long and the short of it is it sounds like everything's going to be just fine.

Topic Author
Paisley
Posts: 77
Joined: Sun Apr 14, 2019 12:32 pm

Re: An Advisor Refusing To Sell Investments

Post by Paisley » Sat May 11, 2019 5:13 pm

Okay good.

pkcrafter
Posts: 13322
Joined: Sun Mar 04, 2007 12:19 pm
Location: CA
Contact:

Re: An Advisor Refusing To Sell Investments

Post by pkcrafter » Sat May 11, 2019 5:38 pm

ACATS - Automated Customer Account Transfer Service
Only NSCC-eligible members and Depository Trust Company member banks can use the ACATS system.
The ACATS system is initiated when the new receiving firm has the client sign the appropriate transfer documents. Once the document is received in good order, the receiving firm submits a request using the client's account number and sends it to the delivering firm.
https://www.investopedia.com/terms/a/acat.asp

Paul
When times are good, investors tend to forget about risk and focus on opportunity. When times are bad, investors tend to forget about opportunity and focus on risk.

Topic Author
Paisley
Posts: 77
Joined: Sun Apr 14, 2019 12:32 pm

Re: An Advisor Refusing To Sell Investments

Post by Paisley » Sat May 11, 2019 5:41 pm

Right - but these are securities that cannot be held at the receiving firm. So they have to be liquidated.

User avatar
celia
Posts: 9316
Joined: Sun Mar 09, 2008 6:32 am
Location: SoCal

Re: An Advisor Refusing To Sell Investments

Post by celia » Sat May 11, 2019 5:58 pm

I think we are missing some important information here.

As an example, do you remember this thread from a little over a year ago? (a minor was posting but some responders were indignant that the advisors wouldn't follow the OP's requests)
viewtopic.php?f=1&t=238384&p=3726486#p3726486

It could be that this OP's money is held in a trust or something else with legal restrictions. This OP isn't the first client to ask this advisor to sell, so something else must be involved.
Last edited by celia on Sat May 11, 2019 6:09 pm, edited 1 time in total.

pkcrafter
Posts: 13322
Joined: Sun Mar 04, 2007 12:19 pm
Location: CA
Contact:

Re: An Advisor Refusing To Sell Investments

Post by pkcrafter » Sat May 11, 2019 6:01 pm

Paisley wrote:
Sat May 11, 2019 5:41 pm
Right - but these are securities that cannot be held at the receiving firm. So they have to be liquidated.
OK, your friend should request the funds be sold, and yes, he may have to confirm his identity before the current custodian does anything. It sounds like your friend did contact the receiving firm and they told him they don't carry the funds he wanted to transfer. In that case your friend needs to follow procedure to sell the funds, then he should contact the receiving company for transfer.

Paul
When times are good, investors tend to forget about risk and focus on opportunity. When times are bad, investors tend to forget about opportunity and focus on risk.

Topic Author
Paisley
Posts: 77
Joined: Sun Apr 14, 2019 12:32 pm

Re: An Advisor Refusing To Sell Investments

Post by Paisley » Sat May 11, 2019 6:13 pm

The thing that is so frustrating is that he DID contact the firm (his advisor) and the advisor said that his hands were tied and that the receiving firm had to sell the funds. So my buddy, following the advisor's instruction, called the receiving firm and asked them to sell the funds. The receiving firm said in an ACAT transfer, the receiving firm cannot give instructions to sell. So, the client, now confused and frustrated, went around his advisor and called the delivering firms ops dept. and they confirmed receiving firm's statement, saying that ONLY the delivering firm, NOT the receiving firm is allowed to sell assets in an ACAT transfer.
The advisor's own operations department representative said that if an advisor from their firm wouldn't accept a verbal instruction to sell from his client in this situation, he has broken the sacred trust relationship that is meant to exist between a client and the advisor.

staythecourse
Posts: 6965
Joined: Mon Jan 03, 2011 9:40 am

Re: An Advisor Refusing To Sell Investments

Post by staythecourse » Sat May 11, 2019 6:21 pm

Easy just tell him to email him and tell him if this doesn't happen ASAP that he will report him to the SEC. Get the email for the broker complaints and mention on the email. Tell him he has 48hr. to get it done. If he doesn't do it send the email and cc him on it.

If he wants to pay hard ball don't take it.

No matter what happens write some reviews online on your experience. It will help others to know what they are getting into. When his boss finds those reviews it will be in enough "payback".

Good luck.
"The stock market [fluctuation], therefore, is noise. A giant distraction from the business of investing.” | -Jack Bogle

Topic Author
Paisley
Posts: 77
Joined: Sun Apr 14, 2019 12:32 pm

Re: An Advisor Refusing To Sell Investments

Post by Paisley » Sat May 11, 2019 6:24 pm

staythecourse wrote:
Sat May 11, 2019 6:21 pm
Easy just tell him to email him and tell him if this doesn't happen ASAP that he will report him to the SEC. Get the email for the broker complaints and mention on the email. Tell him he has 48hr. to get it done. If he doesn't do it send the email and cc him on it.

If he wants to pay hard ball don't take it.

No matter what happens write some reviews online on your experience. It will help others to know what they are getting into. When his boss finds those reviews it will be in enough "payback".

Good luck.
Thank you! I think the threat of a seriously blemished U4 will motivate him!

pkcrafter
Posts: 13322
Joined: Sun Mar 04, 2007 12:19 pm
Location: CA
Contact:

Re: An Advisor Refusing To Sell Investments

Post by pkcrafter » Sat May 11, 2019 6:43 pm

OK, it seems to make clear sense...


Paisley wrote:
Sat May 11, 2019 6:13 pm
The thing that is so frustrating is that he DID contact the firm (his advisor) and the advisor said that his hands were tied and that the receiving firm had to sell the funds.

No, the receiving firm does not hold the assets, so cannot do anything, however, maybe your friend asked to transfer the current funds, and didn't mention selling them until he discovered the receiving firm did not carry them. It sounds like a communication/misinformation problem, at least in the beginning.
So my buddy, following the advisor's instruction, called the receiving firm and asked them to sell the funds. The receiving firm said in an ACAT transfer, the receiving firm cannot give instructions to sell.
That is correct.

So, the client, now confused and frustrated, went around his advisor and called the delivering firms ops dept. and they confirmed receiving firm's statement, saying that ONLY the delivering firm, NOT the receiving firm is allowed to sell assets in an ACAT transfer.
The advisor's own operations department representative said that if an advisor from their firm wouldn't accept a verbal instruction to sell from his client in this situation, he has broken the sacred trust relationship that is meant to exist between a client and the advisor.
I think the advisor's duty is sometimes to confirm that the request is actually coming from the account owner and after all this messing around, the advisor probably wanted written confirmation on identity. Pretty much standard procedure under the circumstances. The only problem seems to be the advisor's comment on selling and it's possible he misunderstood what the account owner was actually wanting to do. The account owner sounds like he is not fully knowledgeable on how this is supposed to be handled.

It now sounds like the transfer will proceed.



Paul
When times are good, investors tend to forget about risk and focus on opportunity. When times are bad, investors tend to forget about opportunity and focus on risk.

Topic Author
Paisley
Posts: 77
Joined: Sun Apr 14, 2019 12:32 pm

Re: An Advisor Refusing To Sell Investments

Post by Paisley » Sat May 11, 2019 6:56 pm

I hope so!

Topic Author
Paisley
Posts: 77
Joined: Sun Apr 14, 2019 12:32 pm

Re: An Advisor Refusing To Sell Investments

Post by Paisley » Sat May 11, 2019 7:17 pm

Is my friend to blame for any of this? Could he have done a better job with his advisor?

User avatar
J G Bankerton
Posts: 858
Joined: Thu Sep 14, 2017 3:30 pm

Re: An Advisor Refusing To Sell Investments

Post by J G Bankerton » Sat May 11, 2019 7:28 pm

Paisley wrote:
Sat May 11, 2019 6:13 pm
..he has broken the sacred trust relationship that is meant to exist between a client and the advisor.
There is no sacred trust, there are fiduciaries and there sales persons.

Topic Author
Paisley
Posts: 77
Joined: Sun Apr 14, 2019 12:32 pm

Re: An Advisor Refusing To Sell Investments

Post by Paisley » Sat May 11, 2019 7:31 pm

Maybe I am just second guessing things. I just dont want to think that an advisor would really do something like that on purpose...

User avatar
Rick Ferri
Posts: 8764
Joined: Mon Feb 26, 2007 11:40 am
Location: Georgetown, TX. Twitter: @Rick_Ferri
Contact:

Re: An Advisor Refusing To Sell Investments

Post by Rick Ferri » Sat May 11, 2019 7:35 pm

The adviser could have his or her hands tied. Depending on the firm, an account may be frozen upon entering a transfer status and an adviser cannot sell or buy.
The Education of an Index Investor: born in darkness, finds indexing enlightenment, overcomplicates everything, embraces simplicity.

Topic Author
Paisley
Posts: 77
Joined: Sun Apr 14, 2019 12:32 pm

Re: An Advisor Refusing To Sell Investments

Post by Paisley » Sat May 11, 2019 7:43 pm

Rick Ferri wrote:
Sat May 11, 2019 7:35 pm
The adviser could have his or her hands tied. Depending on the firm, an account may be frozen upon entering a transfer status and an adviser cannot sell or buy.
Unfortunately, that part of my buddy's situation is not really up for debate: HIS OWN FIRM said he was not telling the truth about that!

User avatar
Rick Ferri
Posts: 8764
Joined: Mon Feb 26, 2007 11:40 am
Location: Georgetown, TX. Twitter: @Rick_Ferri
Contact:

Re: An Advisor Refusing To Sell Investments

Post by Rick Ferri » Sat May 11, 2019 7:48 pm

I used to be a broker for 10 years. The LAST thing a person wants to do is tell a broker they are leaving and THEN ask the broker to do something, ESPECIALLY sell securities. The broker will [take advantage of --admin LadyGeek] the client with commissions.

Your friend is better off transferring the account in-kind and selling at the receiving firm.

Rick Ferri
The Education of an Index Investor: born in darkness, finds indexing enlightenment, overcomplicates everything, embraces simplicity.

Topic Author
Paisley
Posts: 77
Joined: Sun Apr 14, 2019 12:32 pm

Re: An Advisor Refusing To Sell Investments

Post by Paisley » Sat May 11, 2019 8:03 pm

Are there ANY honest advisors out there?! :x

Just kidding....I know there are...

User avatar
J G Bankerton
Posts: 858
Joined: Thu Sep 14, 2017 3:30 pm

Re: An Advisor Refusing To Sell Investments

Post by J G Bankerton » Sun May 12, 2019 8:56 am

Paisley wrote:
Sat May 11, 2019 8:03 pm
Are there ANY honest advisors out there?! :x

Just kidding....I know there are...
Have any "advisor" put in writing that they are a fiduciary. You would be shocked at what so caller reputable firms sell their clients. They are just above Madoff Investments in honesty.

Topic Author
Paisley
Posts: 77
Joined: Sun Apr 14, 2019 12:32 pm

Re: An Advisor Refusing To Sell Investments

Post by Paisley » Mon May 13, 2019 7:25 am

The advisor should have to eat the market loss!

User avatar
J G Bankerton
Posts: 858
Joined: Thu Sep 14, 2017 3:30 pm

Re: An Advisor Refusing To Sell Investments

Post by J G Bankerton » Mon May 13, 2019 7:39 am

Paisley wrote:
Mon May 13, 2019 7:25 am
The advisor should have to eat the market loss!
Have your friend get out and use this as a learning experience. For honest no bias advice from some of the best in the business have your friend post their portfolio in this forum.

If it is like most portfolios setup by a sales person there will have to be some changes made and the sooner the better.

deltaneutral83
Posts: 1106
Joined: Tue Mar 07, 2017 4:25 pm

Re: An Advisor Refusing To Sell Investments

Post by deltaneutral83 » Mon May 13, 2019 7:55 am

Oh Man, had he been trying to get to move last Monday (5/6/2019) that would have been perfect timing !

Topic Author
Paisley
Posts: 77
Joined: Sun Apr 14, 2019 12:32 pm

Re: An Advisor Refusing To Sell Investments

Post by Paisley » Fri May 17, 2019 5:06 pm

FYI....
My friend was told by the firm's back office to send them a letter of instruction. He was given specific details of what to say. He sent in the letter of instruction on Tuesday and he was promised that the trade would take place Thursday or Friday. He even confirmed that everything was in good order the next day. Well...guess what!...they didnt sell the funds as promised! They are now promising they will sell them on Monday...

Any thoughts?

Topic Author
Paisley
Posts: 77
Joined: Sun Apr 14, 2019 12:32 pm

Re: An Advisor Refusing To Sell Investments

Post by Paisley » Fri May 17, 2019 10:54 pm

Does anyone have any experience with filing a complaint with FINRA over something like this?

User avatar
J G Bankerton
Posts: 858
Joined: Thu Sep 14, 2017 3:30 pm

Re: An Advisor Refusing To Sell Investments

Post by J G Bankerton » Sat May 18, 2019 8:09 am

Paisley wrote:
Fri May 17, 2019 10:54 pm
Does anyone have any experience with filing a complaint with FINRA over something like this?
I have found a complaint to a regulatory authority usually gets action. What is the name of the firm?

Sandi_k
Posts: 994
Joined: Sat May 16, 2015 11:55 am
Location: SF Bay Area

Re: An Advisor Refusing To Sell Investments

Post by Sandi_k » Sat May 18, 2019 11:58 am

Rick Ferri wrote:
Sat May 11, 2019 7:48 pm
I used to be a broker for 10 years. The LAST thing a person wants to do is tell a broker they are leaving and THEN ask the broker to do something, ESPECIALLY sell securities. The broker will [take advantage of --admin LadyGeek] the client with commissions.

Your friend is better off transferring the account in-kind and selling at the receiving firm.

Rick Ferri
Rick, prior posts in the thread made clear that these funds cannot be transferred in kind - they're proprietary.

User avatar
midareff
Posts: 6211
Joined: Mon Nov 29, 2010 10:43 am
Location: Biscayne Bay, South Florida

Re: An Advisor Refusing To Sell Investments

Post by midareff » Sat May 18, 2019 12:36 pm

Wiggums wrote:
Sat May 11, 2019 12:51 pm
mighty72 wrote:
Sat May 11, 2019 12:41 pm
Best way is to work with the firm you are transferring to. Every time I have moved my account, I got all the forms from the firm I was moving to and sent it to them. They deal with your current brokerage.

Also, I am sure the advisor can not refuse to sell. Tell him that you want him refusal to sell in writing and if let him know that you will complain to the relevant regulatory authority.
+1000

I agree. Let the company receiving the funds deal with your broker. Save any written documentation and keeps notes on any phone calls. Stay calm. This will get resolved.
and hold him legally liable for any diminutive value changes via the legal system.

inbox788
Posts: 6350
Joined: Thu Mar 15, 2012 5:24 pm

Re: An Advisor Refusing To Sell Investments

Post by inbox788 » Sat May 18, 2019 12:55 pm

Paisley wrote:
Fri May 17, 2019 5:06 pm
FYI....
My friend was told by the firm's back office to send them a letter of instruction. He was given specific details of what to say. He sent in the letter of instruction on Tuesday and he was promised that the trade would take place Thursday or Friday. He even confirmed that everything was in good order the next day. Well...guess what!...they didnt sell the funds as promised! They are now promising they will sell them on Monday...

Any thoughts?
A little more patience?

Your friend doesn't seem to understand the process and some steps aren't instant, and involve people (including himself) to take steps, and sometimes missteps can require a redo. Do you know what funds are delayed, maybe provide an example?

The first A in ACATS is AUTOMATED, so whatever failed automation has to be processed manually. Once he initiated an ACATS transfer, did you really want someone to manually tinkering with the process midstream potentially causing more trouble?
Investments you can't transfer in kind include:

CDs held directly with a bank.
Certain options.
Limited partnerships and private placements.
Certain mutual funds and other investment products offered exclusively by your current firm.
Certain low-priced securities traded over the counter (OTC) or on the pink sheets market.
Commodities.
Annuities.
Life insurance policies.
https://investor.vanguard.com/account-t ... -questions
https://investor.vanguard.com/contact-u ... -there-any

We're so spoiled by technology...just wait till you have to deal with probate...
https://www.nationaldayofunplugging.com/
https://www.nytimes.com/2019/04/24/well ... onger.html
https://www.nbcnews.com/mach/science/su ... ncna947566

Post Reply