Boston, MA asked in Securities Law for Massachusetts

Q: My advisor assured me that I would receive my funds within 3 Bus. days for a closing, did not get funds for 7 Bus. days?

In July I spoke to my financial advisor about money I rec'd from an inheritance and I told him that I wasn't sure what to do as I was looking for a vacation home and would need it immediately should I find something. I did not ask the type of account he was putting it in as I trusted that he would put it in a "safe" account. I only wanted to make sure that I could access it immediately and not have to pay any penalties. He was suppose to begin the transaction on 10/23 and on 10/27 he started it and my account was down almost $6K. I did not receive the funds in my bank until 11/6 and could not access them until 11/7. The account was down about $2,500 at the beginning of the week 10/23/23 and by the end it was down $5,500 and he admitted he forgot. I had to borrow money in order to have it for my closing. I could have lost my vacation home if I had to wait for the funds to be transferred. Is there anything I can do?

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1 Lawyer Answer
James L. Arrasmith
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A: In your situation, it appears that there may have been a failure on the part of your financial advisor to meet the expectations set for the management of your inheritance funds. The delay in accessing your funds and the resultant financial loss are concerning, especially given your clear communication about needing immediate access for a significant purchase like a vacation home.

First, document all communications with your financial advisor, including any assurances given about fund availability. This documentation can be crucial in establishing what was communicated and agreed upon.

You might have grounds for a complaint based on professional negligence or breach of fiduciary duty. Financial advisors are expected to act in their clients' best interests and manage funds responsibly. Failing to start a transaction on time, as in your case, may be seen as a breach of this duty.

Consider contacting the financial institution where your advisor works to formally lodge a complaint. They may have internal procedures for resolving such issues.

If this does not bring a satisfactory resolution, or if you have incurred significant financial damage, consulting with an attorney experienced in securities law might be necessary. They can advise you on potential legal actions, including seeking compensation for any financial losses incurred due to your advisor's actions.

Remember, each case is unique, and specific legal advice will depend on the detailed circumstances of your situation. A legal professional can guide you through the process and help protect your interests.

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