Portugal is the newest large American expat destination and the one where US brokerages are most aggressive about restricting accounts. European regulation (MiFID II and PRIIPs rules) makes it burdensome for US firms to sell many products — US-domiciled ETFs and mutual funds in particular — to EU residents. The result is a wave of Americans in Lisbon and the Algarve being told their accounts are frozen, their funds can no longer be bought, or their business is no longer wanted.
What goes wrong in Portugal
Three patterns we see from Portugal.
- 01
The EU-resident freeze
When a firm freezes purchases or forces a sale because you now live in the EU, the question is how it was done. Reasonable notice, an orderly path to transfer, and honest disclosure are required. Positions dumped in a bad week, or a rushed transfer into an unsuitable “international” product, are not.
- 02
The replacement product
Advisors who specialize in “US expats in Europe” often steer clients into insurance-wrapped portfolios, offshore bonds, or fund platforms with layered fees. If a FINRA-registered representative made that recommendation, its suitability can be challenged.
- 03
Retirement accounts and a broker who stopped calling
IRAs and 401(k) rollovers are typically the largest asset a Portugal retiree holds. Neglect — no rebalancing, no contact, no response to instructions — while the account is concentrated or leveraged can itself be a claim.
Working with Birmingham from Portugal
Your hours, not ours.
Lisbon is six hours ahead of Birmingham, which means your early afternoon is our morning — a comfortable daily overlap. 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.
Portugal
- Local
- ––:––
- Birmingham
- ––:––
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 Portugal
- 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
- How to Keep a US Brokerage Account While Living Overseas Address, residency, the “we no longer serve your country” letter, and how to move an account without a forced sale — for Americans abroad. 7 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
- Offshore and Expat Specialist Advisors: Who Regulates Them How to check whether an “expat specialist” advisor is registered — BrokerCheck, the SEC’s IAPD, host-country regulators — and what unregistered means. 7 min read
- The Retirement Rollover Checklist Before You Move Abroad Before you roll a 401(k), TSP, or pension into an IRA and leave the country: what Regulation Best Interest requires, and the questions to ask in writing. 7 min read
My US brokerage says it cannot sell me US ETFs because I live in the EU. Can you fix that?
That restriction comes from EU rules, and we cannot make a firm ignore them. What we can examine is whether the firm handled the transition negligently or steered you into something unsuitable as a result. Those are separate questions from the restriction itself.
Do you understand the tax side — PFIC, NHR?
We are securities litigators, not tax advisors, and we will not pretend otherwise. We work alongside your cross-border tax professional when a case involves tax consequences of a forced sale.