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.
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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
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misguided information. No guarantees are implied.
