Here’s another useless exercise the investment industry goes through each year – annual client statement audits.
Each year you probably get a statement from your investment provider that comes with a letter or statement on it that says something like this …
“The annual audit of our accounts is being conducted as of December 31st, 20__. Please review this statement and directly advise our auditors, _____________, of any errors or omissions.”
Now don’t you think that if you did notice something wrong or weird during the year you would have let someone know right away? What are the chances that …
A/ the error or omission was during that period?
B/ you were actually paying attention to every statement during the year?
C/ that you understood everything that happened in your account?
D/ that the purpose of the exercise is to protect the company your account is with?
Sorry I’m a simple person. I don’t see how this helps a client.
Why don’t the companies do something that is useful like send them a statement that says something like…
“Last year we took $17,265.97 out of your account in fees, service charges, taxes and commissions.”
Now that would be helpful!