Answers to the 7 Most Asked Questions
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Do I have to prove what the broker owes me? How does that work?
Yes, usually that is done by describing in your claim form the cash and securities that are owed to you. The court-appointed trustee will compare what you claim against the books and records of the brokerage firm. Frequently, your entire account can be transferred to another brokerage firm for your benefit before you have even filed a claim. However, there are sometimes instances of mistakes in brokerage firm records. In rare cases, these mistakes show transactions made without your authority. You should keep copies of trade confirmations. You should keep copies of your latest monthly or quarterly statement of account from your brokerage firm. A trustee may ask you to supply copies of these documents. If you ever discover an error in a confirmation or statement, you should immediately bring the error to the attention of the brokerage firm in writing. Keep a copy of any such writing you send to the brokerage firm. Remember, if there is something wrong with the brokerage firm’s records of your account, you will have to prove that, or SIPC and the trustee will assume that the firm’s records are accurate.
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