Proposed SEC Rule Seeks to Force Brokers to Find Their Clients

April 7, 2011

Confusing, right?  Shouldn’t brokers always know where their clients are?  Not necessarily.  Clients can lose track of their holdings and/or 401(k)s, move or otherwise lose contact with their broker.  The new Dodd-Frank law is requiring the SEC to implement rules so that brokers (and other institutions) can track down investors who have some money coming to them.

This seems obvious, but legislation is reactive rather than proactive, and this seems to be a problem.

So, if you move, make sure your broker (and more importantly, brokerage house) knows your new address.


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