Question for people experienced with financial/investment law. Legal issues involving mutual funds?

Question for people experienced with financial/investment law. Legal issues involving mutual funds. Around 2002-2003, my mother wanted to put a large portion of her nest egg into a CD.

The bank guy who'd done this for her many times said he couldn't this time. He called in a rep from the bank's investment group, who offered a mutual fund (MF). I told her not to do it since all I knew then was that MFs weren't FDIC insured.

But she was adamant so I signed as joint owner. The fund has performed poorly and recently dropped to nearly the level when it was bought. My mother's distraught at the thought of losing more and wants to pull out now, but there are penalties.

I did research and found it's illegal to sell MFs without showing a prospectus first. I clearly recall that we were only given the prospectus after all had been signed and dotted. Only a general verbal synopsis of the prospectus given before filling out the forms.Do we have any legal or other options?

Can we sue or file a complaint and get the original principle back w/o penalties plus interest? Please help. Asked by MacGyver 54 months ago Similar questions: Question people experienced financial investment law Legal issues involving mutual funds Business > Financial Services.

Similar questions: Question people experienced financial investment law Legal issues involving mutual funds.

1 Didn't want to take an answer slot in case there is an expert here, but I work in the financial services industry and can probably bet that "caveat emptor" would be their response to you, as sad as the situation is. It would be your word against the planners, at best. It wouldn't hurt to file a complaint with the SEC, though it won't get the mutual funds out penalty free.

I would look at the potential penalties v. Potential losses, and pull out or stay in as you feel appropriate. Good luck to you and your mother!

Didn't want to take an answer slot in case there is an expert here, but I work in the financial services industry and can probably bet that "caveat emptor" would be their response to you, as sad as the situation is. It would be your word against the planners, at best. It wouldn't hurt to file a complaint with the SEC, though it won't get the mutual funds out penalty free.

I would look at the potential penalties v. Potential losses, and pull out or stay in as you feel appropriate. Good luck to you and your mother!

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