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‘I am getting very frustrated’: My mother’s adviser has not returned my calls. He manages $1 million. Is this normal?

‘I am getting very frustrated’: My mother’s adviser has not returned my calls. He manages million. Is this normal?

It’s understandably frustrating when your mother’s financial adviser, managing a significant $1 million portfolio, isn’t returning your calls. This situation is not normal and raises red flags about the adviser’s professionalism and accountability. Below, I’ll explain why this is concerning, what’s typical in the industry, and steps you can take, drawing on standard practices and insights from financial advisory guidelines.

Why This Isn’t Normal

  1. Expectation of Responsiveness: Financial advisers, especially those managing substantial portfolios like $1 million, are expected to maintain regular and prompt communication with clients or their authorized representatives (like you, if you have legal authority to act on your mother’s behalf). Industry standards, such as those set by the Financial Industry Regulatory Authority (FINRA) and the Certified Financial Planner Board, emphasize timely responses to client inquiries as part of fiduciary duty or suitability obligations. Ignoring calls over an extended period suggests a lapse in service quality.
  2. Fiduciary Responsibility: If the adviser is a fiduciary (e.g., a Registered Investment Adviser or Certified Financial Planner), they are legally and ethically bound to act in your mother’s best interests, which includes maintaining open communication. Even non-fiduciary advisers (like broker-dealers) must meet suitability standards and respond to reasonable client requests. Persistent unresponsiveness could indicate neglect or potential misconduct.
  3. Red Flags: Unresponsiveness can signal deeper issues, such as:
  • Mismanagement: The adviser may be avoiding scrutiny over poor investment performance or unauthorized transactions.
  • Personal Issues: They could be dealing with personal or professional problems, impacting their ability to manage client portfolios effectively.
  • Fraud or Dishonesty: In extreme cases, as seen in historical examples like Bernie Madoff, lack of communication paired with managing large sums can be a warning sign of fraudulent activity, especially if accounts aren’t held with a third-party custodian like Fidelity or Charles Schwab.
  1. Client Relationship Standards: Research from Morningstar in 2023 indicates that poor communication is a top reason clients fire their advisers. A good adviser should respond to calls or emails within a reasonable timeframe (typically 24–48 hours) and provide regular updates, especially for a portfolio of this size.

Is This Common?

While occasional delays in response (e.g., a day or two) can occur due to workload or personal circumstances, prolonged unresponsiveness is not standard practice. Advisers managing $1 million portfolios typically prioritize high-net-worth clients to maintain trust and retain business. If you’ve made multiple attempts to contact the adviser over days or weeks without a reply, this is outside the norm and warrants immediate action.

Steps to Take

  1. Document Your Attempts: Keep a record of all calls, emails, or other attempts to contact the adviser, including dates and times. This documentation is critical if you need to escalate the issue.
  2. Verify Your Authority: Ensure you have legal authorization to discuss your mother’s account (e.g., power of attorney, trustee status, or her explicit consent). Advisers are bound by privacy laws and may not respond if you lack authority. Contact the adviser in writing, clearly stating your role and copying your mother if possible.
  3. Contact the Firm: Reach out to the adviser’s firm, branch manager, or compliance department. Many advisers work under a larger firm (e.g., a brokerage or advisory company) that oversees their conduct. Ask for clarification on why the adviser hasn’t responded and request a status update on your mother’s portfolio.
  4. Check Account Custody: Confirm where your mother’s $1 million is held. Reputable advisers use third-party custodians (e.g., Fidelity, Schwab, or a bank) that send independent statements and offer online access. If the adviser controls the account directly without a custodian, this is a major red flag, as it increases the risk of fraud. Request recent statements to verify the portfolio’s status.
  5. File a Complaint if Necessary:
  • Internal Dispute Resolution: Most firms have a formal complaint process outlined in their Financial Services Guide. The adviser must acknowledge your complaint within 14 days and resolve it within 45 days.
  • Regulatory Bodies: If the firm’s response is unsatisfactory, escalate to regulators:
    • In the U.S., file with FINRA for broker-dealers or the SEC for investment advisers.
    • In Australia, contact the Australian Financial Complaints Authority (AFCA).
    • If the adviser holds a certification (e.g., CFP), report to the credentialing body, such as the Certified Financial Planner Board.
  • Suspected Fraud: If you suspect misconduct (e.g., unauthorized transactions or missing funds), report to the SEC, FINRA, or local police and the Australian Securities and Investments Commission (ASIC) if applicable.
  1. Review the Portfolio: Request a copy of your mother’s Statement of Advice (SOA) or recent account statements to assess the portfolio’s performance and fees. Compare returns to benchmarks like the S&P 500 to gauge whether the adviser’s management justifies their fees. For example, a 5% return when the market gained 15% could indicate underperformance.
  2. Consider Changing Advisers:
  • If the adviser remains unresponsive or you’re dissatisfied, consider switching. Notify the current adviser in writing to terminate the relationship, cancel any transaction authorities, and stop fee deductions from accounts (including superannuation, if applicable).
  • Vet a new adviser carefully, checking their licensing (via FINRA’s BrokerCheck or ASIC’s Financial Advisers Register), fee structure, and whether they’re a fiduciary. Avoid advisers who push in-house products without clear justification, as this can indicate conflicts of interest.
  1. Seek Legal Advice: If you suspect losses due to negligence or misconduct (e.g., unsuitable investments or excessive fees), consult a lawyer specializing in financial disputes. Firms like Maurice Blackburn in Australia have recovered millions for clients harmed by bad advice. Be aware of time limits for claims (e.g., AFCA disputes may take 18–24 months, with a $309,000 compensation cap).

Connection to Government Debt

Your query about government debt’s impact on personal borrowing and savings is relevant here. High government debt can lead to higher interest rates, increasing borrowing costs for individuals. If your mother’s portfolio includes bonds or fixed-income assets, rising rates could affect returns, making active management and communication with the adviser even more critical. Conversely, higher yields on Treasury bonds could be an opportunity to reallocate savings for better returns, but this requires an adviser’s input to navigate. The adviser’s unresponsiveness prevents you from optimizing these opportunities or mitigating risks.

Practical Advice

  • Immediate Action: Send a written request (email or certified letter) to the adviser and their firm, demanding a response within 48 hours. Include your mother’s account details and your authority to act.
  • Check Fees: A $1 million portfolio likely incurs significant fees (e.g., 1–2% annually, or $10,000–$20,000). Ensure these are justified by the adviser’s services and performance.
  • Safeguard Assets: Confirm the portfolio is held with a reputable custodian and enable online access for real-time monitoring.
  • Plan Ahead: If switching advisers, prioritize those with transparent fee structures and a track record of responsiveness. Fee-only advisers may minimize conflicts compared to commission-based ones.

Final Note

The adviser’s failure to return calls is neither normal nor acceptable, especially for a $1 million portfolio. It suggests a breach of professional standards and could indicate deeper issues. Act promptly to protect your mother’s finances by documenting communication attempts, contacting the firm, and verifying account details. If the situation doesn’t improve, escalate to regulators or consider a new adviser. For further guidance, check FINRA’s BrokerCheck (https://brokercheck.finra.org) or ASIC’s Financial Advisers Register (https://moneysmart.gov.au) to verify the adviser’s credentials and complaint history.

If you provide more details (e.g., how long the adviser has been unresponsive, the type of investments, or your location), I can tailor the advice further.