relationship to broker questions;new account forms

[usurpedmom]

What is the name of your state? south carolina

is disclosure of aunt's relationship w/ financial advisor/broker required in form question: i am, i am not an associated person or related to an associated person within ... financial group. specify to whom and relationship ... . ?

is disclosure of aunt's relationship w/ financial advisor/broker required in form question: i am, i am not an employee of or related to an employee of any exchange or a member firm of any exchange or member of the national association of securities dealers, inc (nasd), or an officer of a bank, trust company, or insurance company. employee/related person employer.

could you explain why or why not?

also, is there obligation on the part of appointed person to power of attorney to notify contingent designee that appointed is declining to perform as power of attorney?

also, is there obligation of designated power of attorney to notify brokerage holding the designated's license to broker that said broker is nephew to client and represents client who is also aunt for whom said power of attorney exists, whether it is affected?

 

[Jeter]

is disclosure of aunt's relationship w/ financial advisor/broker required in form question: i am, i am not an associated person or related to an associated person within ... financial group. specify to whom and relationship ... . ?

A*- Yes

is disclosure of aunt's relationship w/ financial advisor/broker required in form question: i am, i am not an employee of or related to an employee of any exchange or a member firm of any exchange or member of the national association of securities dealers, inc (nasd), or an officer of a bank, trust company, or insurance company. employee/related person employer.

could you explain why or why not?

A*- Yes. The SEC wants to know that you are not directly privy to inside information. They also want to know where and when their registered B/D trade so they can track their activity. Your relationship will also raise a red flag if there is an unusual trading pattern on your account, such as timely buy/sell transactions, churning or covering trades against the box (margin) with certain securities. Brokers tend to treat the account of their family members differently than that of strangers and can be tempted to authorize trades themselves many times because "Aunt Jenny won't take me to arbitration for her losses and I can use the commission to help pay for my new boat".


also, is there obligation on the part of appointed person to power of attorney to notify contingent designee that appointed is declining to perform as power of attorney?

A*- Yes. The firm needs to know who is authorizing the transactions.

also, is there obligation of designated power of attorney to notify brokerage holding the designated's license to broker that said broker is nephew to client and represents client who is also aunt for whom said power of attorney exists, whether it is affected?

A*- This will be uncovered when the POA advises the firm in writing that he/she is not acting as POA for the aformentioned account.