Trading Without Permission
When you hire a broker, you have a contract with him or her to buy and sell stocks for you in your best interest, and only with your permission. A broker should discuss with you each trade he or she would like to make with your account, and he must have your permission to do the trading. Trading without permission is prohibited.
Trading without permission is, unfortunately, not a rare occurrence. Unscrupulous brokers may engage in trading without permission by trying to hide what they are doing, or by trying to convince clients that they have done nothing wrong. It is important, if you are employing the services of a broker, that you know what your rights are, and what your broker's limitations are when it comes to your account. A fast-talking broker may convince you that he didn't do any trading without permission when he or she actually did, and if you aren't well informed you may find his or her argument compelling.
If your broker calls you and tells you that he or she engaged in some trading with your account after the fact, he or she was trading without permission. Telling you after the transaction or transactions have been done does not get the broker off the hook; you are entitled to file a complaint or instigate a law suit. If, however, you agree with the broker that the trading transaction was in your best interest, and you agree with what he or she did, it can be construed as giving your permission. Even if you have been working with this particular broker for a long period of time, you still need to do some research before you agree to a trading transaction that was done without your permission. First of all, you need to tell your broker that you do not condone trading without permission, and that you have every right to take legal or civil action against him or her. Even if your broker assures you that the trading without permission was necessary due to time constraints, you must stand firm. If you let your broker engage in trading without permission once, he or she may feel that it is okay to do it again.
Your broker is supposed to follow your wishes and abide by your choices. If he or she fails to do so, or acts without your consent, you may be a victim of trading without permission. It can be difficult to determine the true nature of stockbroker impropriety, but if you suspect that your broker is acting against your best wishes, you must consult a dedicated and experienced trading without permission lawyer immediately. Let us help you get the restitution and piece of mind you deserve. Contact us today.