On May 2nd I bought 25,000 shares of FGOC in my mom's IRA for .51. On that day I had violated the good faith rule in her account, but the money was still available and the trade processed.
Today, 12 days later, she received a call saying that there was a problem that day with 600+ accounts where they shouldn't have been allowed to purchase securities until the three day clearing took place. Very convenient receiving the call after FGOC rises 40%?????
My take:
1. Tough Sh1t, you processed the trade.
2. I obviously didn't sell the shares thus intended to hold so if I had to wait 3 days I would have bought on May 7th at a price under .50.
3. Fidelity purchased the shares on May 2nd thus THEY are enjoying this 40% run-up.
4. Why wasn't I notified between May 2nd and today as I would have bought the shares when I was called.
Anyone have an approach to take? I talked to two levels of management today and someone from risk management is calling in the morning.
Any ideas would be greatly appreciated. For all the time me, my mom & my sister waited in FGOC, it doesn't seem fair.
3 comments:
Start with point four and work back. Argue every point and remind them of their fiduciary duties to you, the client.
Just to be clear - The shares (stock-x) you sold to purchase FCOG - had they been purchased less than 3 days before selling them? (ie stock-x was not settled)
Has this rule been violated in your mom's account before? For comparison - Scottrade's policy I believe allows you 2 warnings. After that they restrict your account for 90 days - you have to phone in your trades. Another violation and they permanently bar you from on-line trading.
Hey Joe...glad your back and your mom's doing better.
If risk management is in involved than they will more than likely do what they have to do to make you happy.
Are you going to average into skf or buy some uyg for a month.
mdp/mike
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