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The Importance of Address Updates

The Importance of Address Updates

| October 03, 2017
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Just a friendly to reminder for you to notify our office as soon as you know of a pending address change.

Due to recent financial reforms, specifically SEC Rule 17Ad-17, brokerage firms and mutual fund agents have strict procedures to follow regarding returned mail or legally known as “Lost Security Holders.”

Below are the current procedures when mail is returned with no known address:

  • Returned mail account(s) are immediately coded as Lost Security Holders.
  • A NIGO (Not in Good Order) will be added to the account.
  • Our office is notified and an updated address is requested.
  • The account will be restricted so that no withdrawals will be allowed until a new address has been provided.
  • If a new address is not provided within 30 days, the account will be further restricted to no trades, no funds in or out.
  • After a certain period of time, assets may be turned over to a state authority which is called Escheatment. This time period is determine by each state.

So please let us know as soon as possible regarding any address changes to avoid headaches in the future.

If you have any questions, please give me a call. 

Lisa Petrovic, Office Manager

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