Claim Scenario: A registered representative received a trade request from his client. He provided the information to his assistant to process the trade and then left the office for meetings. His assistant attempted to reach the registered representative several times prior to the market closing because she had a question about the order. The registered representative did not respond to his assistant until after the end of the trading day so the trade was not timely executed. As a result, a correction was processed which resulted in a loss for the client due to market fluctuation.
Estimated Claim Cost:
$2,700
Loss Prevention Tip:
Follow-up promptly to ensure that trades are correctly placed. Promptly review
confirmation slips for accuracy and follow-up if you do not receive
confirmation of a trade.
Confirm that your assistant understands your instructions.
Have a process in place in the event questions arise and you are not
available.
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purposes only. The sources used are presumed accurate. CalSurance Associates,
Brown & Brown Program Insurance Services, Inc. and Brown & Brown, Inc.
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