Rockledge, FL asked in Securities Law and Stockbroker Fraud for Florida

Q: Broker decided to close my account and sell my securities. They said I broke section 3 of their agreement without detail

Is it legal for a brokerage firm to decide they no longer want to manage my account and sell my securities without my permission. They refused to transfer them to another firm.

2 Lawyer Answers
Bruce Alexander Minnick
Bruce Alexander Minnick
  • Stockbroker & Investment Fraud Lawyer
  • Tallahassee, FL
  • Licensed in Florida

A: Yes, it is legal for a brokerage firm to decide that they no longer want your business.

No, it is not legal for the brokerage firm to liquidate your securities unless they have a good reason.

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Robert Howard Rex
Robert Howard Rex pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
  • Securities Law Lawyer
  • Austin, TX
  • Licensed in Florida

A: A firm can ask a customer to leave, however they should not liquidate any positions unless authorized by the customer. Generally transfer of securities is done via ACAT which is initiated by the receiving firm. You should ask your new broker to initiate the transfer.

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