Is having a startup while in IB legal
I'm an incoming analyst at a boutique fintech firm. On the side, I've run a fintech startup for around 3 years now. I've done it long enough that I think I could still run it while on the job, but I don't want to go to jail. I will obviously disclose these business activities.
Will my firm allow this? If I wanted to raise seed funding for my startup, will that be a conflict of interest and against FINRA?
Why would anyone go to "jail"? Are you defrauding customers in your fintech? Is your fintech accountancy "creative"? If no - I don't think this has anything to do with being a criminal.
Check your employment contract whether you are allowed to be employed through other means, 99% of contracts won't allow it. You can disclose it early on (before signing), but all they can do is not offer you the position or simply let you go. That's it. I have never seen employment contracts where this clause was not in there.
The other problem would be a similarity in both businesses or the nature of them. It could be argued that your loyalty is towards the company you own or have created, while being employed for another firm. Depending on what these companies do, this often won't work out in your favor. You have access to IP of a competitor, what deals they are working on and who they are partnering with.
I am worried about a potential conflict of interest that can result from for instance being on a deal raising money for a "competitor" and getting inside information, then next week you raise money yourself and idk... I would think this is pretty problematic
Also, if I leave two months into the job and get accepted into a top accelerator, will my resume be attractive other banks. Considering it wasnt started during my stint, the timing just wasn't right.
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