Away Accounts : Outside Brokerage Accounts Catching FINRA's Attention

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Aug 1, 2011 10:30 am

Lately, the Financial Industry Regulatory Authority (“FINRA”) seems to be gnashing its teeth over what Wall Street refers to as “Away Accounts,”  those outside brokerage accounts maintained (directly or indirectly) at other member firms by associated personnel.

According to NASD Conduct Rule 3050: Transactions for or by Associated Persons,  prior to opening an account or placing an initial order for the purchase or sale of securities with another member, an associated person is required to provide written notice to both the employer member and the executing member of his or her association with the other member. However, if the account was established prior to the association with the employer, the associated person is required to promptly notify in writing both members after becoming associated. 

READ THE FULL ARTICLE AT Bill Singer's BLOG