Alas, the market crashes (nearly, 8% of its value today) and your 401k plan is devastated, but could it get worse? Of course, it could. Brokers and investment advisers as well as their employers should expect to see numerous arbitrations and lawsuits as a result of the market crash and volatility.
As a result, brokers and investment advisers should take precautions now. Customer client files should be in order. That means, you have to make sure the files have been properly reviewed and all the appropriate documentation is contained in the file. Further, when there have been prior market crashes, it sometimes makes prior illegal activities, such as Ponzi schemes, come to light. Compliance personnel must be vigilant to these matters.
With the market volatility, it is important to start the preparation for litigation now. Consult with counsel and you will–hopefully- be able to weather the storm.