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Rakhi Vasavada
Rakhi Vasavada, Financial Advisor
Category: Finance
Satisfied Customers: 4545
Experience:  Attorney and Financial Expert. Have specialization in Financial Laws.Practice experience of over 13 years
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I am an IT contractor, through my own Ltd. I just started a

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Dear Sir/Madam,I am an IT contractor, through my own Ltd. I just started a contract in a company in the financial sector.My wife is a retail trader; she trades derivatives, index options. I opened a trading account for my Ltd and she will trade some of my company money as well.The company I started working for has a private account policy, so everybody that works there needs to disclose any security holdings, private broker accounts, etc. Also depending of what the person trades, a trade request need to be submitted to the company before the employee/contractor do any deal. The company said that generally deals requests are authorized within 1hr, but from my wife’s previous experience its not quite so. She worked in the financial sector before, and sometime it took more than a day for her deal requests to be authorized.I know that inside trading is a civil offence, and cases of gross misconduct can lead to immediate dismissal, but I have no intention to inside trade, have no access to sensitive information, and is not even me that will do the trades, is my wife, she is the one that has all the know-how. I am wondering what it would be the the worse case scenario if I don’t declare my private account? How would the company find out that I have a trading account in my company’s name? Even if they would find out would this information be share with other companies or employment agents?I just want to avoid the hassle of having to submit deal requests every time my wife will trade something, after all I will be there for only a couple of month, but at the same time I want to avoid problems in getting other contracts in the future or have anything bad linked to my company name.Kind regards
S
Submitted: 1 year ago.
Category: Finance
Expert:  Rakhi Vasavada replied 1 year ago.

Dear Friend,

Hello and welcome. Thank you for providing an opportunity to assist you.

From what I understand from your situation, it is YOU who is supposed to be contractually bound with the company who you work for. The company that you work for requires YOU to abide by its private account policy.

Having said this, you do not need to take / submit any trade requests for this. You are not required to do it. Let me explain.

The trades that you are going to put will be in your ltd company account who is a separate legal person / entity in the eyes of law. Further more, you wife would be trading and no trades of her would be initiated because of any inside information passed on by you. I do not think your ltd company account traded by your wife falls under the purview of this private account policy.

I am sure this would help.

You may please leave a positive rating if this helps as this is the only way we are compensated for assisting you. Alternatively, you may revert back with a reply if you need further assistance or if I have missed out on any aspect of your question.

Warm Regards,

Rakhi Vasavada and other Finance Specialists are ready to help you
Customer: replied 1 year ago.
Thanks for your quick reply Mrs/Miss Vasavada,I am not sure if it's Me or my Ltd that is contractually bound to disclose the trading account. But I will give you a little more information so it's clear.
The service contract is between my Ltd and the financial company, where I am the consultant under the Ltd that will do the work.In the company personal account dealing policy indicate that any member of staff or their connected persons (family members) need to disclose their broker accounts and depending on what product the person deals it need to be pre cleared first by the company.
I do benefit from the trading done through my Ltd and my wife's trading as well, so doesn't the policy apply to me as well?From your experience Mrs/Mis Vasavada, would this financial company have ways to find out that I have a trading account in my Ltd name?Regards
Expert:  Rakhi Vasavada replied 1 year ago.

Dear Friend,

Hello and welcome. Thank you for your follow up reply.

YES -- You are correct. Let me explain more on this.

Whether only YOU are contractually bound with the private account policy will grossly depend upon the language used in that agreement.

My previous reply was solely besed on the belief that it is YOU as an individual and as a person has signed and contractually bound.

However, if your agreement mentions that definition of "YOU" will include your related entities, i.e. your ltd company and its officials and your immediate relatives which means your wife as well, then any trade executed in your ltd company account even by your wife will fall under this purview.

So, the language used will be very much important to decide the situation.

Further to this, YES, in the present situation, if the contract is between your ltd company and the financial company then DEFINITELY, the account of the ltd company will fall under the purview of the private account policy.

Furthermore, YES -- there are many ways to find out that your ltd company has a trading account in its name. So better disclose and do not resort to consealment of any material information. It will do more harm than good.

I am sure this would help.

You may please leave a positive rating if this helps as this is the only way we are compensated for assisting you. Alternatively, you may revert back with a reply if you need further assistance or if I have missed out on any aspect of your question.

Warm Regards,

Customer: replied 1 year ago.
Dear Vasavada,Thanks for your prompt reply.
Reviewing your answer with my wife, we just realized, that we gave you some wrong information. The service contract is actually between my Ltd, where I am the consultant which will do the job, and the recruitment agency.To make things easier I am sending you a copy of the contract and the code of ethics which talks about the personal accounts and obligations. Would you be able to have a look at them and see if there is any change in your previous answer.Best regards
Expert:  Rakhi Vasavada replied 1 year ago.

Hi,

Give me an hour or two's time and I will revert back.

Warm Regards,

Customer: replied 1 year ago.
Hi Vasavada,Certaintly.Kind regards
Expert:  Rakhi Vasavada replied 1 year ago.

Hello, sorry I had lot of interruptions .

I have gone through some part of your attachments. I need some more time to go through the rest of them.

Please bear with me for couple of more hours. I will get back before morning tomorrow, FOR SURE.

Warm Regards,

Customer: replied 1 year ago.
Hi Vasavada,That's fine, we understand. We still have a couple of more days for me to get back to compliance.
I just want to make sure I get it right. If there is any way I can avoid the hasle of having to disclose everything, it would be great.
My wife's trading give us some extra income, as she is a full time mum now, which is great help in the house budget. But anyway. Many thanks in advance.Regards
Expert:  Rakhi Vasavada replied 1 year ago.

Dear Friend,

Hello again. Sorry for the delay in replying back to you.

I have gone through the PA Policy and I must admit it is very much in detail.

To begin with, the "definition" of "Connected Person" is very much clear and it covers you ( a nominated consultant of your ltd company), your wife, and officials of your ltd company. It also explicitly covers your immediate family members living in the same house, your friends and other organizations you are involved with.

So, to come to the point, I do not see any way in which you will be able to circumvent this.

I understand that trading gives you extra income but so long as you have signed this, I believe, you will have to go through the process of seeking prior approvals.

I am sorry but I am not sounding negative. This is what the contract reads. Alternatively, so long as you are under the purview of this agreement, you may choose to either continue to seek approvals (I am sorry, but you have no recourse to this) OR TEMPORARILY deal only in "Exempt" securities as defined therein in Point. 4.2.2.1 and 4.2.2.2

I would advice you not to attempt to circumvent this because the contract clearly provides that this can result into the overall termination of your contract with them.

I am sure this would help.

You may please leave a positive rating if this helps as this is the only way we are compensated for assisting you. Alternatively, you may revert back with a reply if you need further assistance or if I have missed out on any aspect of your question.

Warm Regards,

Customer: replied 1 year ago.
Hi Vasavada,Thanks very much for your reply. That's what I thought so. I will be in touch with compliance to give them the information necessary. Hopefully their clearing process is quick and smooth.I will update the ratings as a think that's pretty much my query answered.Kind regards
Expert:  Rakhi Vasavada replied 1 year ago.

Thank you so much. It was total pleasure working with you.

You may revert back anytime if you need further help and information. I would be more than happy to keep assisting you.

Warm Regards,

Expert:  Rakhi Vasavada replied 1 year ago.

Dear Friend,

I see you are more than satisfied with my help.

May I know the reason of your refund ? It gets deducted from our earnings.

Let me know if I have fallen short anywhere to help you.

Warm Regards,

Customer: replied 1 year ago.
Hi Vasavada,No, not at all, I am more than happy with your service.I clicked on the premium service icon by mistake. I spoke with the admin person about it, when I saw the notice in your first answer, I thought that I needed to accept it for you to receive your payment.I completed the rating for your payment be processed.Kind Regards
Expert:  Rakhi Vasavada replied 1 year ago.

Hello again.

No, in fact, they deducted the $22.50 from my earnings on this URL.

No worries. It is perfectly alright. Your satisfaction is what that matters to us.

Have a good day.

Warm Regards,

Customer: replied 1 year ago.
I was charged £32.39 for the premium service plus the £38.00 for your standard fee. I only contested the £32.39. I am not sure where the £22.50 comes from.Please let me know if I need to phone admin again to make sure you get your full standard fee.Kind regards
Expert:  Rakhi Vasavada replied 1 year ago.

No worries, It is perfectly okay.

Usually what happens that customer accept to pay for premium fee for the additional time that an expert spends on answering further questions.

Hope this explains.
Warm Regards,