Can you company find out if you did not disclose a personal trading account

R

RGLD

Just to be clear so I don't get a moral lesson. I'M NOT PLANNING ON DOING THIS.

I'm however curious because a lot of banks seem behind the curve when it comes to compliance. I heard your company doesn't really find out but they're just protecting themselves from the SEC if they do so? But SEC doesn't care unless they smell insider trading or huge positions before big moves?

My friend told me they just run some program that gets a feed from all the brokers they are connected with (which is not a lot depending on who you work for). Low level retail brokers they don't even know exist would never appear on the feed.

What happens if you get caught? You'll never work at a financial instantiation again? or a fine? This is not insider trading here, this is an undisclosed account.
 
Don't try to "fly under the radar". No upside to it.

For any institution that is required to know about the financial dealings of their subordinates... there is a rule about "supervision". That is there is a thing about "failure to properly supervise" if you don't know about financial accounts, sources of income, etc.

Shouldn't worry about "getting caught" or "what happens if I do?". Just comply and save yourself a potential future headache.

And if you feel like you "don't want to disclose", or "can't disclose".... then you probably shouldn't be doing it.

Lemme give you an example.

Years ago when I was a Registered Rep of a Broker/Dealer and before I, myself, became a Principal, I got "sucked in?" to being involved with a private placement in real estate. I was "required" to disclose this to the B/D... and they told me, "either terminate your relationship with them or us... IMMEDIATELY". So OK... I complied with the B/D... and the principles of the RE deal later got prosecuted.

So... here's a case where I was "required to disclose" a financial relationship/dealing with my (supervising) B/D... which saved me from a lot of headache.

Food for thought.
 
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Hard to say but you could open a futures only account.

Banks, brokers, money managers, etc. typically dont have restrictions on that, that i'm aware of.

I would say the risk reward is not good, hiding an account and potentially
risking future career prospects.
 
Scataphagos said:
Don't try to "fly under the radar". No upside to it.
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They've actually made it so hard to trade while working now that you basically need to choose between your job and trading securities.

1) You need to register the account
2) All trades that you do needs to be approved by your manager
3) All trades that you do needs to be approved by compliance
4) All holdings need to be held at least for 30 days after purchase.


With these rules it's clear: you either give up your job and trade for a living risking your family and your lively hood. Or you give up trading completely and become another drone trying to make it at their job. It's a sad reality.
 
RGLD said:
They've actually made it so hard to trade while working now that you basically need to choose between your job and trading securities...
More...

Trade other markets that are active outside your work hours. Thus, no conflicts although it will limit your social time with relatives and friends.

wrbtrader
 
RGLD said:
They've actually made it so hard to trade while working now that you basically need to choose between your job and trading securities.

1) You need to register the account
2) All trades that you do needs to be approved by your manager
3) All trades that you do needs to be approved by compliance
4) All holdings need to be held at least for 30 days after purchase.

All this in the name of regulation? Or they just don't want people trading during work hours? You'd imagine people who trade would want to hide a personal trading account so they don't need to go through this.

With these rules it's clear: you either give up your job and trade for a living risking your family and your lively hood. Or you give up trading completely and become another drone trying to make it at their job. It's a sad reality.
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Yes and no.

"Compliance" has rules they must follow. I can see the restrictions are even greater now that before when they applied to me.

Any trading you do has the "potential" to be a conflict of interest vs. customers... and likely up to you to defend "otherwise". Basically they don't want you to trade much... so that you have to either be subject to compliance or not.... not going to allow you to have both without big hassle. (That was true in my day too, but seems might be even more restrictive now.)
 
Oh don't worry you'll be found out and there will be consequences. Not true...Banks, Brokers, Money Managers do have restrictions, and opening a futures account is one of them.
 
wrbtrader said:
Trade other markets that are active outside your work hours. Thus, no conflicts although it will limit your social time with relatives and friends.

wrbtrader
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That doesn't work, you need to register all your trades.
 
RGLD said:
Just to be clear so I don't get a moral lesson. I'M NOT PLANNING ON DOING THIS.

I'm however curious because a lot of banks seem behind the curve when it comes to compliance. I heard your company doesn't really find out but they're just protecting themselves from the SEC if they do so? But SEC doesn't care unless they smell insider trading or huge positions before big moves?

My friend told me they just run some program that gets a feed from all the brokers they are connected with (which is not a lot depending on who you work for). Low level retail brokers they don't even know exist would never appear on the feed.

What happens if you get caught? You'll never work at a financial instantiation again? or a fine? This is not insider trading here, this is an undisclosed account.
More...


Your friend is completely FOS. They won't know if you don't tell them, or unless you're caught trading from your work IP (DON'T). They will fire you on the spot if you work for a BD/MF. Further, you can't use them as a reference. It's not an SEC issue unless you're registered or you're literally crossing trades against your employer--hence the restriction.
 
RGLD said:
That doesn't work, you need to register all your trades.
More...

Seems you now have your answers...don't trade from work especially from a job that you need to notify them of all trades.

Also, don't be asking people from your job about this issue...you may be setting yourself up for more scrutiny.

wrbtrader
 
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