Outside Securities Accounts
Opening a personal account at another firm requires the employer's written consent.
What is Outside Securities Accounts?
An agent who wants a securities account at a different broker-dealer must have the employing firm's prior written consent and must tell the other firm of the association; the employer can require duplicate confirmations and statements. For advisers, access persons' accounts are covered by the code of ethics reporting.
Outside Securities Accounts: a worked example
An agent quietly trading options at a second brokerage is violating the outside account rules.
More terms in Ethics & Fiduciary Obligations
Form ADV Part 2 Brochure Delivery
Deliver 48 hours before the contract, or at signing with a 5-business-day exit.
Advisory Contract Requirements
Written, specific about fees, no assignment without consent, no waiver of rights.
Assignment of an Advisory Contract
Transferring a client contract requires the client's consent - including by change of control.
Performance-Based Fees & Qualified Clients
Allowed only for qualified clients: $1.4M with the adviser or $2.7M net worth (from June 29, 2026).
Prepaid Fees & Financial Requirements
Prepayment over $500, six months ahead, triggers net worth and balance sheet rules.
Custody
Holding, or having authority to obtain, client funds or securities.
Discretionary Authority
Deciding the asset, the amount, or buy versus sell - without asking first.
Third-Party Trading Authorization
Anyone other than the owner needs written authority to trade the account.