Motif Investing, Inc.

Initial Business Response /* (1000, 7, 2015/05/04) */
Contact Name and Title: *** ***, Complian
Contact Phone: XXX-XXX-XXXX
Contact Email: ***@motifinvesting.com
May 4,
Attn*** ***
Dispute Resolution Specialist
Revdex.com, Inc
Broadway, Suite
Oakland, CA XXXXX
Re: Case # XXXXXXXXL *** ***
Dear Ms***
I am writing in response to your request regarding the above-referenced matter, in which Mr*** described his efforts to withdraw $from his Roth IRA account at Motif Investing (account number TKG XXXXXX)
Mr***'s submitted IRA Distribution Request Instructions form on the evening of April 12, 2015, for $At the time, Mr***'s Roth IRA account held $Step ("Transaction Type, Total distribution") and Step ("Fees Optional") indicates: "Fees may be due for total distributions, fed fund wires, Saturday deliver and overnight requestsYou may either pay by check or have the fees deducted from this account or another non-retirement Pershing account over which you have trading authority."
Motif's website describes the fees and commissions associated with maintaining a brokerage accountThis includes a description of fees associated with IRAs, which includes the statement: "There is a $account termination fee for closing an IRA or Roth IRA."
As a result of this termination fee, Mr*** did not have sufficient funds in his account to cover a $withdrawal and a $termination feeFor that reason, Motif left a voicemail message for Mr*** requesting that he call to discuss his requestWhen Mr*** did call, we described the amount of the distribution request, the impending fee, and to determine if he wanted to have the fee deducted from the amount of the withdrawal, or if he wanted to cancel the requestAt that time, we believed given Mr***'s request for a distribution of $and his account balance of $470.99, we described to Mr*** instructions necessary to take a full distribution and close the account
We described to Mr*** on the telephone that the fee was disclosed on Motif's websiteIn addition, indicated to Mr*** that Motif's Customer Agreement indicates he is subject to certain fees and commissions as part of maintaining a brokerage accountMr*** agreed to those terms at the time he established his account
Mr*** is correct that there is no minimum balance required to establish or maintain an accountFor example, Mr***'s brokerage account was opened on April 21, 2014, and his first deposit was received on November 19, In December, Mr*** had purchased one motif - Dividend Kings - and sold it in March, He subsequently purchased an ETF motif todayMr*** was charged an appropriate commission for these transactions
However, Mr*** is incorrect in his belief that he had to maintain $in his account as part of a minimum balance requirementThere is no requirement that Mr*** maintain a minimum balance; the $fee was required as payment for what Motif believed was Mr***'s intent to terminate his IRA account
For your information, I am enclosing the following documents to help support our response:
Copy of Mr***'s IRA Distribution Request Instructions
Copy of the FAQ pages available on Motif's website describing fees,
Copies of website pages describing account types available at Motif,
Portion of the Customer Agreement describing assessment of Fees and Charges,
We believe Motif provided clear instructions regarding the account minimum requirements to establish a brokerage account and, given Mr***'s experiences at Motif, we believe he has an understanding of those requirementsWe also believe that Motif discloses the fee regarding full IRA account distributions clearly on the website, in addition to disclosing that a fee for full distributions will be applied on the distribution request formAnd Mr*** agreed to being assessed certain fees and charges to his brokerage accounts at the time he established his Motif Investing accounts
Given Mr*** has not closed his account and has made a purchase of a motif today, it appears Mr*** intends to maintain his Roth IRA account - at least for some period of timeAs a goodwill gesture, should Mr*** decide to sell his position and closed his Roth IRA account, Motif will agree to waive the termination fee at the time
If you have any further questions concerning this matter, or if you require additional information, please feel free to contact me
Sincerely,
*** ***
VP, Compliance
Motif Investing, Inc
(XXX) XXX-XXXX
***@motifinvesting.com
Initial Consumer Rebuttal /* (2000, 10, 2015/05/07) */
(The consumer indicated he/she ACCEPTED the response from the business.)
I have spent enough time dealing with this companyYou mention that the fee is charged if the account is terminated and I mentioned on numerous occasions that this was not the case, yet you still wanted to charge the feeI decided to buy the motif because I know longer need the money and would have rather invested that indefinitely then lose more then 20% of itI will never use your service again, and will never recommend it to any oneYou could have done this gesture a while ago and avoided the time spent responding to this, would have kept a customer happy that would have deposited more money and therefore more commission fees and would have told other people about itYet, you decided to "be right" instead of letting the customer be rightI will keep this notice and letter so when I do close the account I don't have this issue

Initial Business Response /* (1000, 5, 2016/01/05) */
I have spoken to the customer and we have resolved the matter to our mutual satisfactionWe therefore consider the matter closed
If you have any further questions, please contact me

Initial Business Response /* (1000, 5, 2015/12/17) */
Contact Name and Title: *** ***
Contact Phone: XXX-XXX-XXXX
Contact Email: ***@motifinvesting.com
Attn***:
I am attaching our response to this file for your review
Please contact me with any
questions
Thanks
Initial Consumer Rebuttal /* (3000, 7, 2015/12/24) */
(The consumer indicated he/she DID NOT accept the response from the business.)
Motif is liable for inaccurate data show on the Motif Platform as per the response you received from the business
However, correction action after the loss has been incurred doesn't help me since I have incurred the loss and Motif is off the hook
Final Business Response /* (4000, 9, 2016/01/05) */
Below is our response with was previously attached to our response from December which Customer indicated he was unable to access
Revdex.com
Attn***
Dispute Resolution Specialist
Broadway, Suite
Oakland, CA XXXXX
Re: Complaint Case #XXXXXXXX
Dear Ms***
I am writing on behalf of Motif Investing regarding the complaint submitted by Motif "Customer" regarding his claim that he lost $due to inaccurate data appearing in his brokerage account
On November 24, 2015, Customer attempted to sell shares of Crestwood Equity Partners LP ("CEQP") at the prevailing market price of $At that time, there was a 1-for-reverse split in CEQP that would affect Customer's positionHis account still reflected that he held shares of CEQP and his order was sent to the market for execution, which occurred at the prevailing post-split price of $per share, totaling $262.1983, minus the commission
What Customer should have experienced in his account was that he held shares of CEQP in his accountAnd when he entered his order, it should have executed at the prevailing post-split price of $per share, totaling $in proceeds, minus the commission
Motif received notice of the split on November 25, and applied the adjustment on the same dayGiven the impact of the split, Customer's position was oversold by shares
Motif recognized the impact of the reverse split and called Customer on November At that time, we suggested Customer could adjust his account by either reversing the sell transaction entirely and placing the CEQP shares back in his account, at the correct post-split share balance of shares, or allowing the execution to happen as of the prior day share price ($per share), but adjusting the shares to the correct balance (shares)Customer requested that sell order be reversed and the shares returned to his account
Based on Customer's instructions, on November 25, Motif reversed the errant trade from the previous day, thereby correcting his over-sold position, and reapplied shares to his accountThose shares remain in his account
As a reference, as of the close of the market on November 23, CEQP closed at $per shareThe following day, November 24, CEQP had a 1-for-reverse splitThe closing price on November 24, was $
Using that same logic, on November 23, Customer's account held shares of CEQP in his motifOn November 24, following the application of the 1-for-reverse split, Customer held shares in his account and available for sale
Unfortunately, notification of the reverse split was delayed and because of that confusion, Motif was willing to offer, as an accommodation to Customer, the opportunity to sell his shares, or to have the transaction reversedCustomer elected to reverse the trade and reapply the shares back to his accountIt is also unfortunate to Customer that since the split, shares of CEQP have continued to fallThe closing share price as of December 15, was $per share
We regret the confusion that this corporate action had on Customer's account and provided him with further explanations regarding this transaction by telephone and emailWe provided Customer with an opportunity to reset his account, which he accepted
Customer is not due any further adjustments to his CEQP position and is not entitled to his $claimHis account was adjusted correctly and he is now subject to taking market action on his CEQP position
If you have any questions regarding Customer's transaction or if you need additional market data, please feel free to contact me
Final Consumer Response /* (4200, 11, 2016/01/11) */
(The consumer indicated he/she DID NOT accept the response from the business.)
I have lost $due to Motif's inaccurate platformMerely adjusting my account correctly to show the $loss doesn't take liability away from Motif
Plan and simple - I made a trade based on what was being shown in real-time in my account and it cost me $and if you correct it later, it means you need to account for the loss not merely correcting or posting the accurate amount to my account

Initial Business Response /* (1000, 5, 2016/03/10) */
*** Investing makes tax documents available online for customers, such as Mr*** relies on its clearing firm, Pershing, to prepare tax documents and in doing so, Pershing obtains tax reporting information from issuers of securities
In this case, *** posted a Form notice in Mr***'s account on 2/9/indicating that Pershing is awaiting final information from two issuers before it can post a final copy***'s Customer Service Team emailed Mr*** a full copy of the draft Form on March 7, 2016, noting that Pershing is awaiting final tax information from one of the issuers that Mr*** invested in: Seadrill Partners LLC, a Limited Liability CompanyA copy of the notice and transaction is attached to the word.doc, included in this submission, as a referenceUnfortunately, a final cannot be delivered until Pershing obtains the tax information it requires from Seadrill PartnersOnce it does, the final version will be posted to Mr***'s accountThe remaining transactions from the year 2015, are reported on the 1099, though the watermark "draft" indicates a final copy is pendingIn addition to the 1099, Mr*** has access to his monthly account statements and trade confirmations, also available online through his *** account*** seeks to provide access to account documents - including tax forms - quickly, and certainly within regulatory required timeframesIn this caseMr*** was notified on 2/9/of the status of his He now has access to his 1099, though tagged as draftHe has access to his account statements and trade confirmationSeadrill reported fourth quarter earnings on February 25, 2016, which may have had an impact in timing of reportingMr*** should understand that once our clearing firm Pershing receives notice of Seadrill Partners LLC reports tax information, that information will be updated on his and be made available to him

Initial Business Response /* (1000, 5, 2015/12/22) */
We are writing in response to the recent inquiry concerning the above-referenced matter. To begin, we want to confirm that on December 10, 2015, Motif responded to the customer's request to transfer all funds to Customer's bank account at JP...

Morgan Chase . Those funds ($230.32) were received in good order by ACH transfer on December 11, 2015. The account has remained closed with a $0.00 balance since that time. Thus, customer requested funds and Motif, based on customer's instructions, issued her funds to her bank account as instructed.
Customer is correct that on December 1, 2015, she sold 0.42 shares of WTW for a total of $6.07 and she sold her Biotech Bay motif, with proceeds totaling $215.96. Those shares would typically be available for distribution on trade date, plus 4 days. Customer then sold 1.00 shares of SQ on December 4, 2015 for $6.99 in proceeds. Customer also requested a full distribution from her account. Unfortunately, the full transfer of funds would have to wait until the SQ trade settled in her account.
Customer emailed Motif on December 2, 2015, using a new email address, with a question about timing for available funds and was informed of our T+4 policy. Motif attempted to call Customer at the phone number provided but, as it turned out, that the phone number was not in service. Customer emailed Motif on December 9, requesting a transfer. Because the third sell order (SQ) was still pending settlement, the only way to distribute all funds was to obtain a verbal confirmation from the customer, as a customer accommodation. Once again, Motif attempted to call the customer using the number of record and, again, the customer's phone number was not in service.
On December 10, 2015, customer submitted a completed withdrawal request. Motif was able to comply with that request and issue the funds to the JPM Chase account as requested.
Motif's stated policy regarding transfers is that outbound transfers incur a 60-day hold for funds that are going to a second institution. Customer's initial transfer was received from Wells Fargo - those funds would typically be required to be held for 60 days before they could be transferred to a non-Wells Fargo account. As an accommodation to the customer, Motif processed all funds to the JMP Chase account. Those funds were transferred as soon as funds for all three sell orders had settled and the entire balance of funds were available to be transferred, as the customer requested.
Given that Motif responded to Customer's transfer instructions in an timely manner, Customer is not entitled to any additional compensation. Further, as a concession, Motif allowed all funds to be transferred, rather than enforce the 60-day hold. Last, Customer could have been contacted more expediently had her contact information been current - including her telephone number and contact email address.
If you have any further questions or require additional information, please feel free to contact me.

Initial Business Response /* (1000, 5, 2015/05/14) */
May 14, 2015
Revdex.com
Attn. [redacted]
Dispute Resolution Specialist
1000 Broadway, Suite 625
Oakland, CA XXXXX
Re: Case # [redacted]
Dear Ms. [redacted]
I am writing in response...

to your recent inquiry regarding the above-referenced case number involving [redacted] and is self-directed brokerage account with [redacted] Investing.
Our records confirm Mr. [redacted] initiated an ACH to transfer funds to his Rollover IRA account, which would not have been completed in time to meet the April 15 deadline for prior-year contributions.
Mr. [redacted] contacted [redacted] Investing and spoke with a customer service representative on April 15, 2015. Here is a summary of that conversation from the time Mr. [redacted] asked about the timing for posting a prior-year contribution:
[redacted]: ...If you need to make a contribution for the previous year, the best way you could do it is by writing a personal check, postdating it with today's date, put it in the mail and mail it out to us.

Customer: I can do that.

[redacted]: OK. Now, did you want me to cancel that other ACH transfer?

Customer: Is there any way other than check to do this? Because, I actually really wanted to use that money to make purchases. I just sold my other motif because I wanted to do some trading. So I was really looking at what's the quickest way of doing that. I figured since the transfer was technically dated the 14th as far as tax liability goes I should be fine on that end, shouldn't I?
[redacted]: It has to be in the account by today, when it actually makes the deposit to the account. And so in this case it won't make it in by today. So the fastest way, unfortunately is the check.
Customer: OK. It's like ancient technology here. I mean I guess if that's the only - it doesn't sound like there's any other way right?
[redacted]: Yeah, that's literally the only way to make sure (customer cuts him off)
Customer: You guys don't have any kind of like local drop off partners where I can just deposit into the account do you?
[redacted]: No, no.

Customer: So, what's the quickest transfer normally if it's outside of business hours?
[redacted]: It actually is the way you did it. The reason why it didn't make the cutoff time is that it has to be done before 2:00 p.m, ET. And even then it's not guaranteed. So it's always better to do it the day before that, if you're trying to get it in on the target date. But if it's not before 2:00 p.m. ET we won't even process it until tonight.
Customer: OK, I know even if I make that check dated today to be honest with you it should be fine because I think you're allowed to do it up until the 15th.

[redacted]: Yeah, exactly. The only thing that you would need to do is print out the deposit slip online and state which year you want the contribution to be on that slip. And put it in the mail with a personal check and then you'll be fine, you'll make it.

Customer: OK, could you email me, to the email on the account, like a brief summary of the address I'll need because I'm making that deposit? I appreciate that, I'll do it tonight after work.
[redacted]: OK. Alright, I'm going to go ahead and send that email to you. Now did you have any other questions for me or anything? Oh, that was my question, did you want me to cancel that ACH?

Customer: Yeah, let's cancel that then if it's not going to do it and I'll just send you guys the check...
Following the conversation, Mr. [redacted] wrote a check for $1,600 with a note for a 2014 contribution. The check was dated April 14, 2015. [redacted] received the envelope with a post-mark of April 16, 2015, meaning Mr. [redacted] did not send his 2014 contribution check prior to the April 15 deadline.
Clearly, Mr. [redacted] had an awareness and understanding of IRA contribution deadlines, given his intentions with this transaction, his awareness to call customer service on April 15 and his questions about timing his contribution would be posted. Mr. [redacted] was accurately informed that his best alternative was to mail a contribution check and deposit slip, marked 2014 contribution, to [redacted] on April 15, which were instructions that, based on Mr. [redacted]'s response and his intended actions, he understood. He expressed an understanding of the timing involved by asking if there was any drop off location available - which there was not. While Mr. [redacted] may have attempted to mail his contribution on April 15, he did so too late in the day, as his envelope was postmarked April 16. Further, Mr. [redacted] should have been aware if his envelope was going to be picked up in time to meet his deadline. Had he chose to drop his envelop in a mailbox, the pickup times appear on the mailbox lid. Had he chose to drop his envelope at a post office location; he would have seen if the office was open or closed - many post offices are open for extended hours on April 15 to allow for tax filings. Thus, it would have been obvious to Mr. [redacted] if, at the time he was mailing his envelope, he had met his deadline.
Mr. [redacted] initially stated losses, with refiling fees, would exceed $600, for failing to apply a $1,600 prior-year contribution. He requested full reimbursement. In response to [redacted]'s request that he substantiate his losses, Mr. [redacted] provided screnshots from TurboTax, which contains fields of information that could be manipulated and are not validated by a tax expert. Still, his stated tax losses amount to $534, as reflected in his letter to the Revdex.com.
[redacted] made an effort to meet Mr. [redacted] halfway and as a goodwill gesture, [redacted] proposed to settle with Mr. [redacted] by ultimately offering to credit his account with $250, which he rejected. Again, [redacted] believes the responsibility to submit the contribution check was solely Mr. [redacted]'s and that he understood the timing required to make his contribution. At no time was Mr. [redacted] told to post-date a check, or to submit a check after the April 15, 2015 deadline - those decisions were Mr. [redacted]'s alone. Once Mr. [redacted] rejected [redacted]'s goodwill gesture to meet his claims halfway, [redacted] considered the matter closed.
Mr. [redacted] incorrectly his claim that his calls to [redacted] to obtain further assistance were ignored. Mr. [redacted] had called our manager in customer service and, as always, his calls were received and his requests for our written responses were completed. This point is obvious given Mr. [redacted]'s description of how he attempted to resolve the matter with [redacted]. I had also responded in writing to Mr. [redacted] and, after receiving a voicemail message from Mr. [redacted] on my phone (he obtained my name and phone number from my letter to him, dated April 30), I responded by phone to him the same day, leaving a voicemail message. In that message, I stated that I had received his written dispute from the Revdex.com and would be responding accordingly. Mr. [redacted] did not call me back following my message, or customer service regarding this matter.
[redacted]'s Customer Agreement, which Mr. [redacted] agreed to abide by at the time you established his account, indicates that [redacted] customers, as self-directed investors, are responsible for the activity that occurs in their accounts. [redacted] makes no recommendations regarding trading activity and does not provide any tax, retirement planning, or legal advice. Mr. [redacted] is responsible for ensuring his contributions are applied within well-known IRS time frames. We believe Mr. [redacted] was aware of the timing requirements given his actions, and the responsibility for failing to mail his envelope in a timely manner rests with him.
For your reference, I am enclosing a copy of the deposit slip, check, and envelope. I'm also enclosing a copy of our written response to Mr. [redacted], in which [redacted] responded to his request for a description of the events. In addition, pleased find copies of Mr. [redacted]'s worksheet from TurboTax with implied claims for losses. Lastly, I am enclosing a portion of [redacted]'s Customer Agreement, which describes the customer's responsibility for all investment decisions and that [redacted] provides no legal, tax, estate planning, or investment advice (Section 13).
If you have any further questions or concerning this matter, please feel free to contact me.
Sincerely,
[redacted]
VP, Compliance
[redacted] Investing, Inc.
(XXX) XXX-XXXX
[redacted]@motifinvesting.com
Initial Consumer Rebuttal /* (3000, 7, 2015/05/20) */
(The consumer indicated he/she DID NOT accept the response from the business.)
last part of the conversation that was recorded:
"Customer: OK, could you email me, to the email on the account, like a brief summary of the address I'll need because I'm making that deposit?
[redacted]I appreciate that, I'll do it tonight after work. [redacted]: OK. Alright, I'm going to go ahead and send that email to you. Now did you have any other questions for me or anything? Oh, that was my question, did you want me to cancel that ACH? "
the customer service rep was fully aware at that point of the time of the check being mailed and said nothing about it.
Also. I spoke with their supervisor and said "the costs and fees will likely be over 600, once I have to pay someone to redo my taxes, I wont know the exact amount until I do so"
to which the supervisor asked me to get an estimate of what the "damages" were, and I said I would do so.
At this point the [redacted] agent is accusing me of manipulating the tax program to defraud the IRS, which is a substantial claim with no proof or evidence.
If [redacted] would like to pay the additional cost of having a CPA redo my taxes, I will go ahead and do so, to submit the full amount of damages owed.
However, at this point, I dont believe that in the interest of "customer service", or client retention, it makes sense to blindly accuse me of any of the above acts to try to avoid the fact that your incompetent customer service reps gave wrong advice, and no disclaimer is going to change that.
the statements made by [redacted], of [redacted], are done so in a manipulative fashion, and the "$600" figure is clearly taken out of context to try to change the conversation from what their company did wrong to cause this situation, and damages on my end, and instead accuse me of tax fraud.
Final Consumer Response /* (3000, 21, 2015/08/03) */
(The consumer indicated he/she ACCEPTED the response from the business.)
I'm not interested in [redacted]'s condescending tone, or their thoughts on what they feel I am or am not 'entitled' to.
Thank you for the great example of poor customer service and further explaining why I will be closing my account.
Once my money is returned in the form of a CHECK, not an account credit, then we can discuss closing the case with the FINRA.
Until I see a refund, there will be no changes in the FINRA case.
Hi [redacted],
is there an expected timeline for when I would be receiving my return, as stated in the dispute resolution?
thank you
Final Business Response /* (4000, 23, 2015/08/04) */
[redacted] - thank you for the clarification on the timeframe. We anticipate completing and responding by your stated deadline of August 18, 2015.
Thanks again.

Please contact me with any further questions concerning this matter at [redacted] or [redacted].

Revdex.com:I have reviewed the response made by the business in reference to complaint ID [redacted], and find that this resolution is satisfactory to me. I'm still disgusted, but don't want to make enemies.Sincerely, [redacted]