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Brokerages The Bulk Of SEC Complaints
Most complaints filed with the Securities and Exchange Commission concern brokerages, says SEC Commissioner Cynthia Glassman.
Most complaints filed with the Securities and Exchange Commission concern brokerages, says SEC Commissioner Cynthia Glassman. Speaking to a broker-dealer conference in San Diego, Glassman said 31% of filed complaints involved brokerages, with fewer about corporations, mutual fund companies, investment advisers and transfer agents. Brokerages also represented 15% of enforcement actions. Of the five most often reported types of complaints, the largest category involved transfer-of-account problems (622), followed by unauthorized transactions (533); problems with redemptions or liquidations (518) account records, mainly errors or missions on customer statements (433); and unsuitable recommendations (395). Glassman pointed out that in the last category, "When the market is up, the total number is down and vice versa."