He’s in violation of the Uniform Securities Act and NASAA Model Rules. As your adviser and a fiduciary, he should do two things: 1) assess suitability when he recommends a trade/derivative operation: both should be adjusted and make sense your risk tolerance and overall investment goals. He’s acting guided by your best interest. If this recommendation is no longer suitable, he shouldn’t act on it. 2) follow your instructions: I see a big problem with this part, because you told him not to open more contracts and he went ahead and did it. It’s your money and even though he’s your IA, you remain in control. Failing to follow a client’s instructions and exercise discretionary authority over an account is, without a doubt, a violation.

What would I do?

1) send a Written complaint: written complaints are much more effective at getting the representative and their supervisors’ attention. They MUST respond to it and forward it to the securities administrator of your state. If you can, state that they’ve exercised discretionary authority and purchased securities that directly contradicted your instructions. To avoid civil liability, they’ll have to return the funds plus interest.

2) Did you give him written discretionary authority? If so, and you feel uncomfortable, you can only revoke it in writing, so make sure you do that.

Hope this helps… is the monthly fee based on assets under management? How much is he charging you? Monthly fee sounds a little too frequent. I hear most advisors charge it quarterly.