To seniors, I am working for a reputed stockbroking firm as a dealer. I have been with the same company for 4 1/2 years. My duty is to generate business by providing recommendations to clients. Recently, one of the clients asked me to trade in his account on his behalf but did not sign any authorization documents. There are some phone recordings of the client making the same request. According to my company's rules, the client will receive trade confirmation alerts via SMS and emails. I executed trades in his account, resulting in a loss. Now, the client has lodged a complaint with our company, demanding the return of the lost amount. Since there are no recording proofs for each trade, our compliance department is asking me to cover the loss. My monthly salary is $9000, and I cannot afford to pay back that amount. I have submitted my resignation, but it has not been accepted.
I find myself in a helpless situation and am unsure about what to do next. Can anyone suggest what steps I should take? If I leave the company without resigning, what implications will it have?
Thank you.
From India
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I find myself in a helpless situation and am unsure about what to do next. Can anyone suggest what steps I should take? If I leave the company without resigning, what implications will it have?
Thank you.
From India
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First and foremost, don't repeat—don't leave without resigning and getting formally relieved or even take any leave without a written intimation/confirmation. If you do that, you could be automatically considered 'absconded', and please don't be surprised if your company or client lodges a police complaint—since this involves a financial issue. This situation is similar (not identical) to the rules governing bank employees who handle the cash/teller counter on any particular day.
You obviously made a big blunder in trading without the proper written authorization from the client.
You mentioned that there are some phone recordings—didn't they help you convince your company management?
You didn't mention the amount involved. There could be a possibility that the company may agree if you ask them to deduct some amount every month—until the full amount is recovered, basically, repayment in installments—with the company handling the client from their funds (this is again what is done in the banking industry—to the extent I know of). But whether the company will accept this suggestion or not depends a lot on your past personal credibility/reputation at work.
All the best.
Regards,
TS
From India, Hyderabad
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1650You obviously made a big blunder in trading without the proper written authorization from the client.
You mentioned that there are some phone recordings—didn't they help you convince your company management?
You didn't mention the amount involved. There could be a possibility that the company may agree if you ask them to deduct some amount every month—until the full amount is recovered, basically, repayment in installments—with the company handling the client from their funds (this is again what is done in the banking industry—to the extent I know of). But whether the company will accept this suggestion or not depends a lot on your past personal credibility/reputation at work.
All the best.
Regards,
TS
From India, Hyderabad
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THE KERALA RECOGNITION OF TRADE UNION RULES, 2011.pdf