Claim Scenario: Simple tasks such as rebalancing funds can lead to big mistakes. A client asked his broker to rebalance his funds, but the broker entered the dollar amount of the rebalance (15,000) instead of the amount of shares which resulted in the sale of 15,000 shares instead of the requested amount which was less than 100 shares. Once the error was discovered and the as of correction was processed, the loss was more than $90,000 due to market fluctuations.
Estimated Claim Cost: $90,000
Loss Prevention Tip:
Check and re-check that all documents submitted accurately reflect the
directives of the client (e.g., trade tickets accurately reflect the client’s
investment orders).
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