Financial services firm providing traditional and e-brokerage services to retail clients
An investor disputed the manner in which their account was serviced, which resulted in a loss when a security was sold when the investor was unable to deposit additional funds as required. We were engaged to review the account documentation and transactional history and render an opinion as to the conduct of our client and the investor and compliance with regulations and the margin agreement.
We conducted a review of account documentation, including the New Account Application, agreements and investment activity. We examined the communications between our client and the investor, including those advising the investor of the need to deposit additional funds as required by Regulation T.
As a result of our review, we provided an opinion to the client that confirmed their compliance with the regulations and agreements in servicing the investor’s account. We determined that the investor was responsible to meet the call for additional funds and had not met this requirement as stipulated in the Margin Agreement they executed.
Our opinion contributed to our client’s successful defense of their behavior in this litigation.