Jun. 21, 2018
Jun 21, 2018 Securities and Exchange Commission To the and Exchange Commission, Gentlemen- I was recently signed up with Prudential to manage a substantial portion of my nest egg. In a nice conference room in a nice office building I was presented with a nice list of diversified investments and a set of "E documents" and told to sign. It was not until after the fact that I saw that I'd entered into a fee based management agreement with an early withdrawal penalty of 7% of the value of the package. Now I'm stuck with it as I see that each of the funds they put me in charges fees on a regular basis and the cost of the fees outstrips the gains. I'm not a stupid guy, but they withheld the printed information regarding the penalty clause until after they got my "e signature" and sold me a bill of goods that lined the pocket of my "financial advisor" and Prudential. I'm sure this is all legal, and the Pru's lawyers can beat up my lawyers, but the mere fact that they can operate this way is wrong. EVERY financial advisor should be a Fiduciary with the client first and a clear statement of fees and penalties presented up front, not buried in a 4 font prospectus. I've been had, and I'm stuck for 7 years. If I live that long, the market may be able to deliver a net return, but there should be a requirement for more transparency, with a statement of fees and penalties in the first page of any document that will lock an investor in. Fees I get. The seven year "we own you" is obnoxious at best, and clearly stated up front would have been a deal breaker. Sincerely, Dr. George Williams