A daughter holding power-of-attorney for her aging mother won an arbitration ruling for the lack of disclosure given by a registered representative at LPL. The broker instructed the client to withdraw funds from a maturing CD within a qualified IRA account and deposit the proceeds into the account holder’s personal checking account. The distributions created a taxable event for the client when she filed her taxes. The FINRA investigation found the representative was negligent and awarded the client approximately $50,000 for the $9,000 generated in taxes for the client.
This is a great example of an enterprise risk.
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