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U.S. Securities and Exchange Commission

What to Do If You Have a Problem With a Brokered CD

Donít be embarrassed if you invested in a long-term, brokered CD in the mistaken belief that it was a shorter-term instrumentóyou are not alone. Instead, you should complain promptly to the broker who sold you the CD. By complaining early you may improve your chances of getting your money back.

Here are the steps you should take:

  1. Talk to the broker who sold you the CD, and explain the problem fully, especially if you misunderstood any of the CDís terms. Tell your broker how you want the problem resolved.
  2. If your broker canít resolve your problem, then talk to his or her branch manager.
  3. If the problem is still not resolved, then write a letter to the compliance department at the firmís main office. The branch manager should be able to provide with contact information for that department. Explain your problem clearly, and tell the firm how you want it resolved. Ask the compliance office to respond to you in writing within 30 days.
  4. If youíre still not satisfied, then send us your complaint using our online complaint form at www.sec.gov/complaint.shtml. Be sure to attach copies of any letters youíve sent already to the firm. If you donít have access to the Internet, please write to us at the address below:

Office of Investor Education and Advocacy
U.S. Securities and Exchange Commission
100 F Street, NE
Washington, DC 20549-0213

We will forward your complaint to the firmís compliance department and ask that they look into the problem and respond to you in writing.

Please note that sometimes a complaint can be successfully resolved. But in many cases, the firm denies wrongdoing, and it comes down to one personís word against anotherís. In that case, we cannot do anything more to help resolve the complaint. We cannot act as a judge or an arbitrator to establish wrongdoing and force the firm to satisfy your claim. And we cannot act as your lawyer.

You should also send your complaint to the banking regulator that oversees the bank or financial institution that issued the CD:

  • The Board of Governors of the Federal Reserve System oversees state-chartered banks and trust companies that belong to the Federal Reserve System.

Caution: Please remember that even if you file a complaint with us or with a banking regulator, we may not be able to help you get your money back.

http://www.sec.gov/answers/brokeredcds.htm


Modified: 07/31/2007