Sample Letter to Broker’s Manager

March 17, 1996

Mr. Jones, Branch Office Manager
Doe, Smith and Jones
123 Wall Street
Anytown, USA 00000

Dear Mr. Jones:

My statement covering the period of January 1 through February 29, 1996 indicates a purchase of 100 shares of XYZ stock and the sale of 100 shares of ABC stock on February 25th. Since Jane Broker and I had not discussed the purchase or sale of either of these issues beforehand and I have not authorized Ms. Broker or your firm to trade on a discretionary basis in my account I must assume that, absent a clerical error, Ms. Broker has engaged in unauthorized trading in my account.

I have attempted, without success, to resolve this problem with Ms. Broker directly by corresponding with her and requesting a written explanation of how the mistake occurred and the corrective action to be taken. Please find enclosed a copy of this correspondence.

Mr. Branch Office Manager, I expect from you, as I expected from Ms. Broker, a written reply within five business days explaining the reason for the mistake and the corrective action you propose to take. You may communicate with me by telephone if you wish, but only as a follow-up to your written response. If I have not received a written reply which satisfactorily addresses my concerns within five business days, I will take whatever further action is necessary to remedy this situation.

Sincerely,

Mary Investor