[Photo: 'Lights', by Ksenia Zhivago]

by Howard Haykin

One broker with Avantax Investment Services (then known as H.D. Vest Investment Services), provided over 40 customers with consolidated account reports that “failed to provide a balanced presentation or basis for the customers to evaluate the facts in regard to certain securities listed in the Consolidated Reports.” Over a 2-1/2 year period, this broker issued reports that did not clearly distinguish between assets held at Avantax on behalf of the customer and included on the Firm's books and records, and other external accounts or assets. Furthermore, account values he attributed to multiple securities accounts differed from the values on the corresponding account statements.

OBTAINING CONSOLIDATED REPORTS.    Customers wishing to avail themselves of this valuable resource should consult with a broker or financial adviser. Customers should inquire as to the reliability of the information presented in their Reports. To be clear, accurate, and not misleading, Reports should fully disclose any and all sources and bases for valuations on which a preparer relied. Finally, inasmuch as Consolidated Reports are “communications with the public,” they must adhere to strict industry rules and standards. Make sure yours is done right.

[For further details, click on … FINRA Case #2018057909501.]