What to Do When Your Broker Goes Rogue

If contacting the broker's superiors doesn't produce resolution, you could try escalating your complaint to FINRA or the SEC.

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Question: My broker invested my money in a stock I had never heard of and we had never discussed. Unfortunately, I did not immediately confront him, and the stock plummeted. I assume that because I did not immediately contest the trade, I am out of luck financially. But how do I lodge a complaint?Answer:

First, contact the broker and the broker’s manager. If that doesn’t yield results, contact the compliance officer at the brokerage firm. The firm may reverse the trade and discipline the broker.

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Kimberly Lankford
Contributing Editor, Kiplinger's Personal Finance

As the "Ask Kim" columnist for Kiplinger's Personal Finance, Lankford receives hundreds of personal finance questions from readers every month. She is the author of Rescue Your Financial Life (McGraw-Hill, 2003), The Insurance Maze: How You Can Save Money on Insurance -- and Still Get the Coverage You Need (Kaplan, 2006), Kiplinger's Ask Kim for Money Smart Solutions (Kaplan, 2007) and The Kiplinger/BBB Personal Finance Guide for Military Families. She is frequently featured as a financial expert on television and radio, including NBC's Today Show, CNN, CNBC and National Public Radio.