Having 2 jobs while at a brokerage firm

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Jul 25, 2005 5:09 pm

Question:


Is there any way my brokerage firm employer can find out if I receive w-2 income from another source (not a brokerage firm by the way)?


I called the IRS and a fella there said there is no way they can give out that privileged info to the brokerage firm's HR dept...but I am still hesitant.  Is there any way (other than someone leaks it to the firm) that the brokerage firm can find out about other w-2 income I receive?


Looking for facts...if you know the answer, please chime in.


Thanks,
Kevin

Jul 25, 2005 5:17 pm

We are required to report "Outside Business Activities" to our B/D.  This includes insurance not paid through the B/D.


Frankly, I don't want the words, "Will anyone ever find out?" to appear anywhere in my life, let alone in a career in the financial services industry.

Jul 25, 2005 5:58 pm

Kevin/Jim ....


You MUST have your firm's "permission" to work elsewhere PRIOR to accepting the position, if not and you are found out you risk possible termination.  Failure to disclose !  I t really dosen't matter as to where you work.


There are snitches in this industry just like anywhere else.

Jul 25, 2005 8:58 pm

To calm everyone down...i have not yet accepted or began any work, but i would like to.


If i did NOT disclose, is the worst thing that could happen is that i would be terminated and barred from the industry?  Could my side employer be held liable by the B/D in any way?  Stupid question I know, but there is a good reason I ask.


Also, just to reiterate the first question...other than a snitch, does anyone know of another way a B/D could find out (aka...searching gov't files via IRS or other gov't entity)?

Jul 25, 2005 9:04 pm

I don't think anyone is not calm here, Jim.  But please understand that violations, particularly at the outset of your career, WILL come back to bit you later.

Jul 25, 2005 9:05 pm

And is it considered any worse if the side employer is a client?


Jul 25, 2005 9:10 pm

Jim, think it through here.


Do you see any possibility of a conflict of interest (real or perceived) in a situation where a client is an employer of yours, and it hasn't been acknowledged or approved by your compliance department?  Any way this situation could possibly blow up in your face?

Jul 25, 2005 9:10 pm

Why don't you just do the disclosure?  Unless you are doing something illegal or prohibited by your broker dealer,  what's the big deal?

Jul 25, 2005 9:15 pm

My firm is wierd in the fact that they don't allow too many outside activities.  It is not illegal.  Just a great opportunity for some side income...so great I might quit the business after 2+ years to do this full-time....and doing pretty well in the advisory business (like it too...it just doesn't pay me $500k /year).

Jul 25, 2005 9:22 pm

Jim, a reputable firm is not weird if it takes a narrow view of outside activities...it's normal. 


Let your conscience be your guide, but remember that there will, at some point, be consequences.

Jul 25, 2005 9:23 pm

and is the worst consequences termination and barring from industry?

Jul 25, 2005 9:27 pm

There might be fines and sanctions, but Compliance Jerk would be a far better person to ask about that.  To me, however, termination and barring from the industry for improper actions that I chose to take with eyes wide open is unthinkable to me.

Jul 25, 2005 10:10 pm

It sounds like though there is no way for them to find out...research or red-flag wise from government documents. 


If I disclose it, my firm will not allow it and then I will possibly be on a watch-list. 

Jul 25, 2005 10:28 pm

So what?  If you're running a clean book, what do you care about watch lists?

Jul 25, 2005 11:48 pm

i wouldn't care about my book...that is not the concern...the concern is "Watch-list" for checking to see if i am in fact participating in an outside business...did you follow the conversation? 

Jul 26, 2005 12:43 am

Well you have to fill out everywhere you worked for the past 10 years.  If you have the part time job then you will have to disclose it.


My little brother was denied a job at the airport because he failed to report all of his jobs on his application. 


If you really need a part time job right now you have to ask the question - is this the right time for me to be making this career move?



Jul 26, 2005 1:03 am
JimMorrison:

My firm is wierd in the fact that they don't allow too many outside activities.  It is not illegal.  Just a great opportunity for some side income...so great I might quit the business after 2+ years to do this full-time....and doing pretty well in the advisory business (like it too...it just doesn't pay me $500k /year).




Gonna be a quixtar IBO?


Jul 26, 2005 7:20 am
JimMorrison:

It sounds like though there is no way for them to find out...research or red-flag wise from government documents. 


If I disclose it, my firm will not allow it and then I will possibly be on a watch-list. 





This is just silly.  There are MANY ways your B/D may find out.



Your quandry (sp?) says more to your management and comlpliance than
your outside employment itself.  The fact you are willing to side
step clear rules in this case will send a messege you are likely
willing to side step rules concerning client related isues such as full
disclosure of fee's and risks.  A B/D will not, not should they,
tollerate you.  If the opportunity is good, go do it.

Jul 26, 2005 9:06 am
rightway:


This is just silly.  There are MANY ways your B/D may find out.


examples being....??

Jul 26, 2005 9:21 am

Jim, if you want to be in the industry disclose the job.  It's that simple.  If you don't, you don't deserve to be in this business, because it's all based on integrity, ethics, & trust. 


If this outside deal is so good that you're tempted to lie to your b/d & risk forever having to report that you've been fired from a job for lying, then just sell your book & take the job full-time now.