Dollars vs. Shares
Dollars vs. Shares03.10.2014
Registered Reps can improve risk management by incorporating
simple habits and small changes into regular business practices. Below is a
claim scenario that may be all too common for some of you Registered Reps out
there. Read on to find out how this could have been avoided:
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