Burned by stock-market losses and questionable sales practices, record numbers of mutual-fund investors are taking their brokers to arbitration. The increase in investor disputes began even before a widening series of scandals began rocking the mutual-fund industry. In just the first nine months of this year, investors filed 1,399 claims involving mutual funds, according to the National Association of Securities Dealers. That's up from 1,249 claims for all of 2002 and just 543 in 2001. Many of the complaints involve such issues as whether brokers put an investor in unsuitable mutual funds or in share classes with high costs.
Posted by Editor at November 3, 2003 10:52 AM