SEC Provides Guidance to Investors on Identifying and Responding to Excessive Trading and Fees

The SEC Office of Investor Education and Advocacy ("OIEA") and the Broker-Dealer Task Force released an Investor Alert detailing steps for investors to take in order to identify excessive trading in their brokerage accounts. The Alert provided guidance on what investors should do if a brokerage firm notifies them of excessive trading in their accounts, or the investors themselves suspect excessive trading or fees.

The SEC recommended that investors review account statements, trade confirmations and online accounts for red flags such as unauthorized trading, frequent trading and excessive fees. In addition, the Investor Alert included a list of questions that investors should ask their brokers if apprised of high volumes of trade activity. According to the Alert, investors who believe there has been excessive trading on their accounts should submit complaints in writing to their brokerage firms, as well as to the SEC or FINRA.