Your Investing Rights
When you invest your money into a security you have rights that are protected under federal and state securities law. We work to protect your investing rights by making sure the securities industry adheres to certain standards.
How we help
Our office is a resource for information about people offering and selling securities in the state of Montana. Brokerage firms and their representatives doing business in Montana must be registered with us. We also register some of the investment advisers in Montana and all investment adviser representatives in Montana.
In addition to registering firms and salespeople, we register some of the securities that are bought and sold in Montana. Companies selling stock directly to investors may have to register or file a notice of their activity with the department.
We have access to a database that lists all of the people and firms registered to sell securities in the country. You can find out if the firm or salesperson you are considering is properly registered in Montana and if they have had any disclosable disciplinary action taken against them by calling (800) 332-6148 or through FINRA BrokerCheck.
Your investing rights & responsibilities
- Get full and accurate information
Securities salespeople are required to provide you, the investor, with full disclosure. This includes information about the firm, the professional work history, and background of the person handling the account and information about the security they are offering.
- Question and consider the information
Contact our office to verify the employment and disciplinary history of a securities salesperson, the salesperson’s firm, and to find out if the investment is permitted to be sold.
- Understand the investment objectives, risks, and charges
- Understand the rate of return, how that return is calculated and ask if there is a prospectus you can study.
- Understand the risks involved — especially how you can make money or lose money.
- Know the costs of the investment including the commissions, transaction or redemption fees, sales charges, maintenance or service charges, and penalties.
- Expect responsible advice and money management
- Professionals have a responsibility to ask about your current financial situation, your financial goals, and give advice to meet those objectives.
- Professionals cannot engage in unethical practices such as churning or excessive trading in your account.
- Professionals must obtain your prior approval before transacting business in your account.
- Take your time
Don’t feel pressured to buy. Beware of exaggerated claims and high-pressure sales tactics.
- Stay informed
- Receive a copy of all completed account forms and agreements.
- Receive account statements that are accurate and understandable.
- Know where your money is and how or when you can gain access to it.
- Problems? Demand Action
- Discuss account problems with the branch manager or a member of the firm’s compliance department.
- Receive prompt attention to and fair consideration of your concerns.
- Don’t be timid or ashamed to complain to us. We work for you.