Rules for Summer Analysts with Brokerage Accounts
Just curious what are the rules for summer analysts with brokerage accounts? As long as you disclose that you have an online account with say Options House or Etrade, then you can continue to maintain that account even while you work as a summer, correct?
It depends on your role. During my SA stint, HR explicitly said that we are not allowed to trade.
just don't trade and disclose EVERYTHING to compliance. Save all your email communications for any questions/comments etc you send and receive from compliance and forward them to your personal email.
this may not seem like a big deal but even if you unintentionally did something wrong, the best case is you don't get a return offer and the worst, well, use your imagination.
From what others have said I gather it depends on firm. But where I worked for SA, we were asked to disclose brokerage accounts under our control and give statements for those accounts. Then any trades during the summer need pre-approval from compliance. Basically, if the security has any connection with something our firm was dealing with, the trade wouldn't be approved. Before you start your SA I'd be comfortable with whatever holdings you currently have, because you may or may not be able to sell them.
^ Seconded
You'll be holding everything you own at the start of your stint until it ends, and probably longer than that, assuming any deals you may have access to could relate to any of your trading activity, or potential future trading activity.
Second what Zpoet said - not just summer but usually a ~6 month period after too. As our legal counsel told me: "just don't be stupid"
Things to keep in mind - make sure your parents don't control brokerage accounts that you are a beneficial owner of, those would need to be disclosed.
Be prepared to not be able to trade - derivatives especially can be annoying as you'll need to close positions you can't roll. Also would recommend covering shorts and compliance may treat a buy to cover as a buy and so if it rips you might just have to come up with a cash Margin Call.
Here's my case - I'll be an SA in a BB in London this summer, and have a brokerage account enabling me to trade at one of the smaller European exchanges, so it's obviously a non-UK trading account. Would I still have to disclose every trade or be prohibited from trading whatsoever? I gave the # of the trading account during background screening cause they asked me but I highly doubt that the bank I have a trading account with will give any info to any 3rd party (it's outside UK jurisdiction and it simply doesn't have to). What about my father? Let's say I am advising him what to buy, what to sell, also on that same exchange. Could he make the trades after my recommendations? Of course I know I cannot rely on any information I will have but the chance my bank will do any business with the companies I trade is rather slim.
Giving family members specific investment advice is a bad idea in general- for anyone, regardless of what your firm's engagements are- especially if you aren't an RIA (or the UK equivalent). I'm not even talking about legal reasons... I just think its a bad practice.
Why so?
Edit// Actually, I am not interested in opinions whether advising per se is a good idea or not. That's massively family-specific. I am asking strictly from a legal point of view.
Reporting outside brokerage accounts as a summer intern (Originally Posted: 06/03/2016)
I recently began an internship at PWM firm, but it only lasts until the end of the summer. I want to start a brokerage account with another firm, but don't know if I have to report it if I'm only an intern for the summer (per rule 407).
Any insight on this?
check with compliance, not the interwebz
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