This must be particularly frustrating as the firm seemingly handled this badly on top of Nvidia experiencing explosive growth over the last couple years. That said, you may have recourse, depending on what happened, pros tell us. And yes, you should find a new financial adviser.
If your investment adviser didn't allow for these types of transactions, you should have been informed in a timely manner, says Alonso Rodriguez Segarra, a certified financial planner and CEO at Advise Financial. "You must document your case thoroughly. If the instructions you gave your adviser were made via phone call, look for the day and the date," says Segarra. "If you requested the transaction in writing, save that email and any other communications you have sent to the advisory firm following up on your case."
If you placed an actual trade with them that was never filled, then you would have recourse in arbitration. "They would have had to give you a trade readback and confirm the order," says Joe Favorito, a CFP and principal at Landmark Wealth Management. "If you have a confirmation number for the trade, then you can pursue it, but it sounds like there was a miscommunication in this case."
You can contact the advisory firm and "if they don't respond favorably, take the case to FINRA" considering you suffered a financial loss, says Segarra. The Financial Industry Regulatory Authority is a self-regulatory organization for broker-dealers that is responsible for supervising firms and offers an online portal for investors to file complaints. The Securities and Exchange Commission has a broader regulatory scope and also offers an online claim portal where complaints can be made against public companies, investment advisers, mutual funds and more.
In addition to being more cost effective and less complex than litigation, arbitration can also be helpful in resolving disputes. Arbitration through FINRA typically follows seven stages; including filing a claim, selecting arbitrators, a prehearing conference, exchanging evidence, attending hearings and rendering an award. According to FINRA, if a case settles, arbitration lasts about one year, whereas if the case goes to hearing, it can take about 16 months.
One thing to note: Pros say that a reputable financial planner typically will not advise you to put all of your money in one stock. "If that's what you plan to do, you don't need a financial planner, you need to open up an account with a discount brokerage firm where you can execute trades in a self-directed account and they simply process your transaction," says Favorito. "That can even be done commission-free online with firms like Fidelity or Schwab."
Going forward, you need a new adviser and to instruct them on how to better interact with you, pros tell us. "To prevent this from happening again, change your financial adviser and then ask the new adviser if [they can provide you with] an automatic communication every time a transaction is made in your account and from time to time, especially when requesting a transaction as important as this one that involved your entire portfolio," says Segarra. You should also be able to log into your investment account the day after requesting a transaction to validate whether it was completed.
Going forward, you'll likely want to work with with a fee-only CFP who is a fiduciary. This will ensure that the professional you're working with has completed extensive education requirements, passed exams, performed thousands of hours of work-related experience and upholds a fiduciary duty.
"At any age, it pays both financially and emotionally to take the time and make the effort to interview several advisers," says Deborah W. Ellis, a CFP and president at Ellis Wealth Planning. "Clarify what you expect from them, consider what would make you feel safe with the right adviser and consider a fee-only CFP as fee-only means their only source of income is the fee you pay them. It can be a conflict of interest if they get payments or bonuses if something they recommend offers financial incentives to them or the company they work for."You can use this free tool from our partner SmartAsset to get matched with financial advisers.
Have an issue with your financial adviser or looking for a new one? Email questions or concerns to picks@marketwatch.com.