Responsibility for Actions of Another

[stjosephtomasi]

I think that my broker might be breaking his firm’s internal policies and maybe even the law in order to generate profits on trades for me, his client.

I have reviewed this with my attorney and he confirmed that I am not breaking any laws.

How much responsibility do I have in this situation? Do I have to stop dealing with the broker? Is it enough that I have made it clear to him that I do not want to (and will not) participate in any unethical or illegal activities?

What are your thoughts?

 

[puzzleannie]

I am thinking, in a prudential light, of something Jesus said about the children of this world being wiser than the children of light, which I take to mean that we learn from those who worship this world how the rules work in this world, ie, dog eat dog. In that light, if a broker cheats to gain you profits, he is undoubtedly doing so for the purpose of generating his own commission, and with that as his goal, will have no compunction about cheating you if he finds it profitable. You have been given a timely warning, and as Jesus said, look at the signs of the times. Cheating brokers and cheating among those with fiduciary responsibilities is the common sign of depravity by the standards of this world. You play, you pay.

 

[Joe_5859]

I think that my broker might be breaking his firm’s internal policies and maybe even the law in order to generate profits on trades for me, his client.

I have reviewed this with my attorney and he confirmed that I am not breaking any laws.

How much responsibility do I have in this situation? Do I have to stop dealing with the broker? Is it enough that I have made it clear to him that I do not want to (and will not) participate in any unethical or illegal activities?

What are your thoughts?

You say that you think your broker might be breaking policies or even the law. What do you base these presumptions on? (Not that you should answer that here, but at least answer for yourself.) Are you that familiar with the internal policies of brokerage firms where you would easily recognize something being done contrary to those policies? If you know something specific, have you brought that specific thing to your broker’s attention where he either affirmed or denied your suspicions?

If, after answering these questions, you still have strong suspicions about his actions, it would certainly seem like it might be time to switch brokers, if nothing more, for your own peace of mind.