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Ensure Funds Are Invested as Requested
Ensure Funds Are Invested as Requested
08.11.2014Registered Representatives can help themselves avoid loss
and reduce exposures using a few simple tips. Try using the below loss
prevention tip to improve your risk management strategy:
Claim Scenario:
The client instructed the registered representative to buy $20,000 of a certain
stock. One month later, the client called the registered representative to sell
the stock. At that time, the registered representative realized he never
executed the original buy order.
Estimated Claim Cost:
$11,000
Loss Prevention Tip:
Periodically check the client’s account to ensure the funds were invested as
requested. Had the registered representative heeded this advice, he would have
realized much earlier that the requested buy was never executed and could have
mitigated his client’s losses. Additionally, having a specific procedure in
place for all trade requests can help reduce the chance of these types of
errors. In this instance, the request was made in an email to the registered
representative as part of a conversation regarding a different topic. Had the
request been through a specific procedure for trade orders, the error likely
would not have occurred.
All information provided in this blog is for informational
purposes only. The sources used are presumed accurate. CalSurance Associates,
Brown & Brown Program Insurance Services, Inc. and Brown & Brown, Inc.
will not be liable for any errors, omissions, losses, injuries or damages
arising from its display or use and will not assume responsibility for any
misguided information. No guarantees are implied.
Written by
CalSurance Team
Published August 2014
