More Americans retire to Mexico than to any other country, and most of them keep their retirement money exactly where it was: in a US brokerage or advisory account. That account is still governed by US securities law, the broker is still a FINRA member, and the duties the firm owed you in Ohio did not evaporate when you moved to Ajijic. What changes is practical: a foreign address, a mail-forwarding service, a broker who is suddenly harder to reach, and a firm that may decide it no longer wants your business.
What goes wrong in Mexico
Three patterns we see from Mexico.
- 01
The address problem
Many Mexico expats keep a US mailing address for banking convenience. When a brokerage later learns the client actually lives in Jalisco, the reaction is often abrupt: purchases blocked, mutual funds frozen to sell-only, or a 30-day notice to move the account. If that forced transition caused losses — a fund liquidated at the bottom, a tax hit from an unwanted sale, a rushed move into a worse product — the firm’s handling of it can be examined.
- 02
The retirement-income pitch
Retirees living on a fixed income in pesos are a recognizable target for “income” products: non-traded REITs, structured notes, variable annuities with long surrender schedules, and private placements. When those products are sold to a 68-year-old who needs liquidity and can’t absorb a loss, the recommendation itself may be unsuitable — regardless of how the broker described it.
- 03
The advisor who came to you
Lake Chapala and San Miguel have their own circuit of financial advisors who market to Americans at expat clubs and seminars. Some are FINRA-registered; some are not. Which one you dealt with determines the forum for your claim. We can check registration status for free before you decide anything.
Working with Birmingham from Mexico
Your hours, not ours.
Mexico City and most of central Mexico sit on the same clock as Birmingham for most of the year, so calls happen during normal business hours on both ends. FINRA arbitration is a document-driven, national forum. Your claim is filed electronically, discovery is exchanged electronically, and hearings are routinely conducted by video. Richard Frankowski has represented investors in FINRA arbitration from his Birmingham office for over twenty-five years — most of them people he first met by phone.
Mexico
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The claims behind the patterns
Each pattern is a recognized FINRA claim.
- 01 “They found out I moved, and now my account is frozen.”
- 02 “I needed income and safety. He sold me something I couldn’t sell.”
- 03 “I was twelve hours away, and the trading never stopped.”
- 04 “I rolled over everything the month I retired. That was the mistake they were waiting for.”
- 05 “He said he specialized in Americans abroad. I never checked who regulated him.”
Guides
Guides for Americans in Mexico
- My US Brokerage Is Closing My Account Because I Live Abroad Got the closure letter? What the deadline means, how to stop a forced sale, how to transfer in kind, and when the closure becomes a claim. 7 min read
- Can I Keep My IRA or 401(k) If I Move Abroad? Yes — Mostly You can generally keep an IRA or 401(k) after moving abroad. What changes is who will hold it — and what brokers get wrong about rollovers and cashing out. 7 min read
- The FINRA Six-Year Eligibility Rule, Explained for Expats FINRA Rule 12206 bars claims six years after the event. What counts as the event, why state limitations periods may be shorter, and why waiting hurts. 6 min read
- Variable Annuities Sold to Retirees Abroad: What to Know Surrender charges, layered fees, oversold riders, and annuities inside IRAs: how variable annuity claims work for American retirees abroad. 7 min read
- Non-Traded REITs: Why You Cannot Sell Them Why a non-traded REIT cannot be sold, where the distributions really came from, and when the recommendation — not the market — was the problem. 7 min read
- Selling Away: When a Side Deal Is the Firm’s Problem Your broker sold you something that never appeared on a statement. FINRA Rules 3280 and 3110 explain when the brokerage firm is responsible anyway. 7 min read
My brokerage told me to close my account because I live in Mexico. Is that legal?
Generally, a firm may decline to keep servicing a non-US resident. What it may not do is handle the transition negligently — liquidate positions without authorization, fail to give reasonable notice, or steer you into an unsuitable replacement. Whether you have a claim depends on what happened, not on the policy itself.
Do I need to come back to the United States for the case?
Almost never. Filing, discovery, and most hearings are handled electronically or by video. If an in-person hearing ever became necessary, we would discuss it with you well in advance — it is not the normal course.
My advisor is Mexican, not American. Can you help?
If the advisor or firm is a FINRA member, yes — FINRA arbitration applies. If they are not registered in the United States, the options are different and we will tell you honestly what they are.