In many instances, these transactions involve existing assets in the account and do not require client payment. In some cases, an existing asset may be liquidated to fund the purchase of a new security. How To Avoid This Problem Always repeat instructions to your broker to promote a clear mutual understanding of the transaction. Thoroughly read and retain, in a timely fashion, your monthly account statements, confirmations, and any other information you receive about your investment transactions. Take immediate action if you see a transaction you do not recognize.
Time is critical .
Reconcile any discrepancies at once. Contact the firm's branch manager. And, send a telegram, or registered or overnight letter to the compliance department of the firm refusing the purchase. Also, follow up with a phone call to the firm's compliance department. The longer the lag time, the less substance and credibility your argument has.