Information from the Washington State Department of Financial Institutions

Tips for Monitoring Your Investments

Review and keep all of your investment records

From the very beginning of your investing program, keep accurate and complete records. Start a file where you keep your new account form, all correspondence, account statements, and other materials that pertain to your accounts.

It is also a good idea to keep a diary of all conversations with your investment professional, especially phone calls. Note the date, place, and subject of the meeting or phone call. If you ever have a dispute with your investment professional, you will have a complete set of records documenting your side of the story.

Check over account statements carefully

Check over your account statements carefully as soon as you receive them. Familiarize yourself with the format, terms, and codes used by your investment professional. Review the account activity section to confirm that it contains only those transactions you have authorized. Check the section of your statement that reflects any change or fees debited to the account.

If there is ever any information in your account statement you don't understand or agree with, contact your investment professional immediately and get an explanation. If your investment professional can't or won't explain it to your satisfaction, contact the branch office manager.

Follow up when you get a "happy letter"

These are letters from the brokerage firm asking if you have any concerns about your account. The letter may even vaguely indicate that certain circumstances led the firm to write to you. For example, the letter may note that you have an unusually high number of trades over a short period of time. Firms send out these letters when they detect unusual (and possibly troublesome) activity in an account. Follow up by contacting the firm's compliance officer and ask him or her to explain any problems indicated in the letter.