Legal Question in Securities Law in Pennsylvania

Re: Brokerage Account Fee Disclosure Laws

It may be included in your initial customer agreement and the disclosures accompanying the agreement. It also may have been sent to you as an insert with your statement. Recently, there have been margin disclsoure inserts, an SEC required "use of your personal information" disclosure, with a host of other disclosures. The annual fee was probably not one of them. Not only was your account inactive, but there was probably a negligible balance. Why sweat the $25 or $50 they charged. If you do not like it change brokerage firms. I have heard of cases where they sold securities to get the $25 to pay their fee (now that is outrageous). Depending on who is the clearing firm, these charges are typically disclosed in advance. Other than in the class action context, do you really think some $300 per hour lawyer wants to go chase some clearing firm for $25....

Fees must be disclosed. Try calling the firm's compliance department and asking where their's was disclosed. If not, you want your money back....

Re: Brokerage Account Fee Disclosure Laws

My knowledge in securities law is chiefly the rules and regulations associated with private limited offerings. However, that being said, If you are seriously irritated by this transaction I suggest you send correspondence to the firm indicating your intent to report this matter to the NASD. I believe the NASD ("National Association of Securities Dealers") regulates day to day activities and licensing of broker/dealers.