Unauthorized Transactions

Unauthorized transactions are trades your broker makes in your account without your permission or authorization. But if you have a margin account and the value of the account falls below your firm's requirements, your broker may be able to sell your securities without consulting you first. This would not be an unauthorized transaction if your account agreement allows your broker to sell your securities, even without notice to you, to collect the money you have borrowed.

The major securities industry self-regulatory organizations have rules prohibiting unauthorized transactions. You'll find FINRA's unauthorized trading rule – Rule 2310-2(b)(4)(iii) – in the "FINRA Manual." To request a copy of the New York Stock Exchange's unauthorized trading rule – Rule 408(a) – please call the NYSE at (212) 656-2744.

If you believe your broker made unauthorized transactions in your account or engaged in another sales practice abuse, please send us your complaint using our online complaint form.

http://www.sec.gov/answers/unauthtransact.htm