You have the right to:
Responsible Investment Advice
- Work with an investment professional of your choosing who
will help you clarify your investment goals and risk tolerance
and help you achieve your stated objectives.
- Receive personalized investment advice about securities that is in your best interest.*
- Be informed of material conflicts of interest between you
and your broker-dealer or account representative.
- Receive reliable information from your investment firm that
will assist you in setting realistic expectations about the
potential long-term performance and associated risks of
various securities.
- Be presented with reasonable investment alternative
designed to meet your expectations, including comparative
risks, benefits, and costs.
* We note that in a January 2011 study the US Securities and Exchange
Commission staff called for SEC rulemaking to implement a uniform fiduciary
standard of conduct for broker-dealers and investment advisers when
providing personalized investment advice about securities to retail customers.
SIFMA looks forward to participating in any such SEC rulemaking.
Clear and Meaningful Disclosures
- Receive clear and accurate descriptions of all your
transactions, statements and other communications from
your financial services firm.
- Be clearly informed about the fees associated with your
account.
- Be clearly informed about the risks associated with
individual investments and your overall portfolio.
- Receive accurate and timely periodic statements of your
account, including detailed transactional information.
- Receive clear descriptions of your financial services firm's
policies and practices for protecting the privacy of nonpublic,
personal information.
Quality Service
- Be treated in a fair, ethical and respectful manner in all
interactions with a financial services firm and its employees
and affiliates.
- Receive competent and courteous service and advice at a
commercially reasonable price.
- Choose products and services that are suitable for your
investment goals in line with your stated risk profile,
provided that you meet any prequalification requirements.
- Move your investment account(s) to another investment
professional or a new firm in a simple, efficient manner while
assuring protection of your privacy.
- A prompt response from your financial services firm, if there
are concerns with your account(s).
- A clearly defined process for raising, resolving, and if
necessary, elevating a complaint.
Taking a long-term view and engaging
in a continuous dialogue in partnership
with your investment professional,
and modifying your approach as your
circumstances or market dynamics
change, is the time tested way to increase
the likelihood of achieving your financial
objectives.
Take important steps
To help foster a successful relationship
with your chosen investment professional
and firm, you will want to take a number
of important steps.
Incorporating these steps into your
relationship will help provide the best
opportunity to achieve your objectives.
Inform and Educate Yourself
- Read carefully all documents available before making an
investment decision, including sales literature, prospectuses
and/or other documents, when available. These documents
provide information that is important to understand before
making any investment.
Keep Your Accounts Current
- Have cash or available margin-buying power in your
investment account, or transfer funds into that account, to
ensure payment for securities purchases by the settlement
date. If you are paying by check or funds transfer, you
should always make payments directly to your investment
firm.
- Review account and transaction related materials provided
by your investment firm. Report any errors or any questions
you have to your investment professional or branch
manager immediately.
- Consider carefully all investment risks, fees and/or other
factors explained in these documents.
Use the Right Resources
- While your investment professional can provide advice to
you to help you try and achieve your financial objectives,
they cannot provide specific tax or legal advice. Consult an
attorney or a tax adviser when appropriate.
- Unless you grant your investment professional full discretion
over your account, you are ultimately responsible for your
investment decisions. Consider carefully the validity and
reliability of investment information, especially unsolicited
information. If you are working with an investment
professional and do not understand something, be sure you
ask. If you still are unclear, or believe you need additional
information, you should feel comfortable elevating your
inquiry.
COMMUNICATE with your investment professional
and let them know your expectations about frequency
- and method of - ongoing communications.
DETERMINE what information you need or
want from your investment professional by asking
questions you have about your account, a specific
transaction, risk exposures, potential conflicts of
interest and, of course, commissions, sales charges
and other fees.
PROVIDE accurate information about your financial
status, investment goals and risk tolerance when
seeking investment recommendations, so that your
investment firm can provide you with appropriate
advice.
NOTIFY your financial representative when there is
a significant change in your investment objectives or
personal circumstances.
REVIEW your portfolio holdings and transaction
statements on a regular basis, including whenever
your financial circumstances change.
Resources
