Undisclosed broker account
Hello,
I started working in an investment bank and recently I opened online broker account by eToro and opened speculative trades on crypto (company I work for doesn't do any crypto trades). During registration, I filled in my employer's name.
However, three days after placing trade I found out that my employer requires to disclose all accounts and also does not allow short selling. As soon as I found out, I closed all the trades immediately (ended in loss) and closed the account.
Now I'm anxious if I should disclose this to compliance. I fear of getting fired when I come clean. I just didn't think this might be a problem because I don't work in sales/investment apartment. Please don't tell me how stupid I am, I know already.
Dude, this has been discussed ad nauseum. If you used the search function, you would have found your answer.
Honestly, every time I hear this question, I'm surprised at people's stupidity. It sounds like you opened an account after starting, didn't disclose the account in the first place, were making unmonitored trades, and then when you found out, you freaked. I just have one question - did you have to disclose your other accounts (ie Schwab, ETrade, RH, etc.) accounts and either get your bank's compliance officer added as a monitor or move your accounts to one of their preferred platforms OR were you aware that your bank would require this? The answer should be yes. Likewise, the answer should be clear - go to Compliance, inform them of the disclosure, provide all account statements, etc. While you're there, ask them about their trading policy so you can understand what is required from now on. That's what you do.
agree 100% with Frieds. Tell them immediately, tell them it was an accident. You'll get a slap on the wrist. If they find out later and you lied, theyll send you packing.
Just to add to the imapct here - Selling Away (trading with an undisclosed account at another firm) is a major FINRA violation. I know people who have been "Asked to Resign" (read fired without having been formally fired as to not impact their U4 because this is a big fucking deal) for trading away. Compliance doesn't take that shit lightly for good reason.
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I do not believe you will get a slap on the wrist. You will probaby be terminated. HR / compliance does not fuck around with this. At this point hope they never find out imo, unfortunately you have put yourself in a tough position OP.
If you do come clean, maybe the fact you only traded crypto will save you. Not sure how the rules on crypto differ from public equities but would assume its a lot less regulated.
I wouldn’t disclose and would hope nothing comes of it. That said that was a really boneheaded move
Messing with compliance rules at an investment bank is a great way to be banned from performing financial services at any company. Any advice to not disclose is asinine and provided out of a focus on self-preservation and short-term thinking without assessing risks. Disclose and hope for the best
Something similar happened to me in the past. A mix of stupidity and laziness of not checking thoroughly the trading policies. I got lucky and wasn't fired, but it was a very shitty couple of weeks.
Disclose it, and hope for the best, because if they find out that you were aware of having violated compliance rules and didn't disclose it, you're done.
Keep your mouth shut. Play dumb if it comes up (it won’t).
Wait are you guys saying you’re not allowed to trade crypto? I assumed they weren’t securities so it was okay? Being 100% serious should I close my Coinbase account now? I had no idea that was a problem - can anyone confirm we’re not allowed to do that?
At GS they aren’t classified at securities so zero restrictions on crypto
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