Brokerage at fault for delayed communication?

Question

If a bond is called and the brokerage hasnt notified the bondholder in four months through mail or phone,should the bondholder receive interest for that period while the funds sat idle?

Answer 1

The brokerage should have notified you of the change. I would get to a different brokerage firm.

Answer 2

The bond probably was not held by the brokerage firm, but

Yes the brokerage firm should have notified when they were notified that the bond was called.

You can claim interest from the firm, they will claim the interest from the depository that was holding the bond, or from the brokerage firm that owed them the bond

Answer 3

i'm not so sure it's the broker's fault.  didn't this show under the activity portion of your brokerage statemetn?

also, is your account a discretionary or non-discretionary account?  if it's discretionary, then the broker has almost full discretion over the investment decisions affecting teh account, and therefore won't really call to let you know about every little thing that goes on.   he'll probablycall about big stuff.

if the account is non-discretionary, then you're making all teh decisions, and just relying on your broker to make trades for you, and other administrative type of stuff.  also to provide you with research,etc.    so it's on you to pay attention for when a bond his maturity or is called.