Wife's Co. says I need to transfer my IRA there, really?

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Jun 30, 2010 7:10 pm

Hello,

My wife was recently hired on at Wells Fargo as a registered rep.  They told her that she needed to move her IRA account over to Wells Fargo and also that I (being her husband) needed to move my account over there as well.  I'm not a registered rep, so I don't understand this.  Is this just Wells Fargo pulling her strings?  I'm trying to get to the bottom of this.  What rule says you (or rather, the husband) has to transfer his IRA to the company the wife works for?  I know previously she was having duplicate statements sent to the company she previously worked for, so I'm not sure why this isn't possible at Wells Fargo too.  I'm not a big fan of someone telling me where I have to keep my money...doesn't sound legit. 

So anyway, I came across this forum in my attempt to find an answer.  My wife, being new, doesn't really want to press the issue with her boss.  I'm hoping all of you wonderfully smart people can help me out!

Thanks!

Jun 30, 2010 9:00 pm

Each firm is different, but FINRA considers immediate family members as those having a financial interest, so the spouse is on the hook as well since a financial interest exists. There are minimum FINRA regs, then often more stringent rules imposed by the b/d.  Wife could get a compliance violation, lose her job for cause or both...with a hickey on her U5 for 10 years.

Jul 2, 2010 10:14 am

I think the bigger question here is why does the husband not want his WIFE as the FA on the account?  If I were her, I'd be really pissed off that my husband wasn't my very first client.  Even from just a pure asset gathering perspective, is there ever going to be easier assets to gather than your spouse's 401k rollover or IRAs? 

Millimmy - what's the deal with not wanting your wife's name on the advisor line on your statements? 

Jul 2, 2010 10:15 am

I think the bigger question here is why does the husband not want his WIFE as the FA on the account?  If I were her, I'd be really pissed off that my husband wasn't my very first client.  Even from just a pure asset gathering perspective, is there ever going to be easier assets to gather than your spouse's 401k rollover or IRAs? 

Millimmy - what's the deal with not wanting your wife's name on the advisor line on your statements? 

Jul 8, 2010 8:37 am

[quote=iceco1d]

Amp, I'm not so sure I buy that. 

We aren't supposed to give a spouse information about a client's IRA, unless we have authorization.  I can't see how they can require her spouse to move it.

Suppose they were legally separated, but still married, and not speaking.  What are they going to do?  I really don't think they can require this.  Bill, can you chime in here? 

[/quote]

Most firms consider immediate family an associated person and want to monitor trades in that person's account(s). However, that may not fly if challenged, so many firms make it a condition of employment, one you agree to as part of accepting the position.

Employer's can levy any number of requirements as part of accepting the job or even after you are in a job for some time.  And if you are in an employment-at-will state, not much you can do if you don't like the conditiins except head for the door.

That gets the accounts moved and avoids any entaglements with FINRA/SEC

Jul 8, 2010 3:10 pm

There is sound reasoning and legal precedent for requiring immediate family IRA's to be held at the institution where the spouse is registered. Now, I hope you have at least 1/4 million in the account and aren't wasting our time on some $40,000 IRA? Now, if you don't trust your wife to carry your IRA in her book then I think you have other issues.