News Releases

NYSE Regulation “Informed Investor” Advises What to Do If Your Broker Changes Firms
NEW YORK, May 25, 2006 – NYSE Regulation, Inc. (“NYSE”) announced today the latest in its “Informed Investor” series titled “If Your Broker Changes Firms, What Do You Do?” The new advisory provides important questions to ask, and issues to consider, when a broker asks a client to follow him or her to a new firm.
“A good relationship with a broker who understands your objectives and investment experience is extremely valuable,” said Richard G. Ketchum, chief executive officer, NYSE Regulation, Inc. “To protect your interests, you should ask questions and make a well-informed choice before agreeing to transfer your account when your broker moves to another firm.”

NYSE member organizations employ over 195,000 registered personnel. Moving from one firm to another is not an uncommon practice. But before agreeing to move with a broker, investors need to understand what fees and charges may be levied, what rates of return are offered on cash in money market or bank accounts, whether or not all of their investments are portable, and what products and services are available at the new firm.

Potential conflicts of interest should also be identified. For example, it is especially important to know if a broker is receiving a bonus to change firms. Although there is nothing wrong with an inducement of this type, it could lead to unwarranted account activity to generate more commissions in order to increase this bonus payment to the broker.

These are just a few of the important issues to consider when your broker asks you to move with him or her to another firm. “As an educated customer, you can make an informed decision and better determine the mix of advantages when you know the questions to ask and ask them,” the publication states. 

About NYSE Regulation, Inc.
NYSE Regulation, Inc., is a not-for-profit corporation dedicated to strengthening market integrity and investor protection.  A subsidiary of NYSE Group, Inc., NYSE Regulation’s board of directors is comprised of a majority of directors unaffiliated with any other NYSE board.  Each director must also be independent from member organizations and listed companies.  As a result, NYSE Regulation is independent in its decision-making.

NYSE Regulation protects investors by regulating the activities of member organizations through the enforcement of marketplace rules and federal securities laws.   NYSE member organizations hold 98 million customer accounts or 84 percent of the total public customer accounts handled by broker-dealers.  Total assets of NYSE member organizations are over $4 trillion.  They operate from 20,000 branch offices around the world and employ 195,000 registered personnel.  NYSE Regulation also ensures that companies listed on the NYSE and on NYSE Arca meet their financial and corporate governance listing standards.

NYSE Regulation consists of four divisions:  Market Surveillance, Member Firm Regulation, Enforcement and Listed Company Compliance, as well as a Risk Assessment unit and Dispute Resolution/Arbitration.  For more information, visit our website at

Contact: Scott Peterson
Phone: 212-656-4089

Contact: Brendan Intindola
Phone: 212-656-4236