Working With Legacy Investment Positions, With Rich Chen

The gist

1. Document client restrictions and your disagreement with heavy concentrations in writing, because verbal conversations fade and create legal exposure if the position loses value.
   CRM
2. Mismatched expectations about what services cover a restricted position are the main cause of regulatory actions and lawsuits, so written agreements are essential.
3. Advisors have three fee options: exclude the position but plan around it, charge full AUM with documented monitoring, or use reduced fees tied to the concentrated asset.
4. Monitor lockup and blackout period expirations on employer stock more than once a year, since missing a sell window when the client wanted one creates real liability.