Compliance personnel are thick anyway. The department of the last bank I was at before I went totally independent had a minimum holding period of 30 days for everything. I asked about derivative contracts and they insisted that the same rules apply. I protested and pointed out that the contracts expire etc. I also asked if that meant we could not have a stop loss order on a position. The reply was a restatement that there was a minimum holding period of 30 days for everything.
So, just sign and keep quiet.
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I had to sign one of these once. I then diligently used to take copies of my contract notes to one of the secretaries. One time I asked her how many other people in our department she got these forms from and she said I was the only one who she'd ever known who fillled them in out of all the permies and contractors.Leave a comment:
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Money laundering / Insider dealing compliance forms are pretty standard across most IBs now.Originally posted by electronicfur View Post
Just sign it and keep quiet. As long as you are not into anything stupidly risky nor have fat fingers then keep your dealings to yourself.Leave a comment:
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The problem is they expect you to request permission for any trading activity(apart from government bonds). Includes any trading over which you have control, eg trades within a self select ISA or SIPP.
And it takes several days to get permission.
They ask for broker name and account number.
I have worked in banks previously as a member of a 3rd party vendor and never had to do this before.Leave a comment:
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Sign the form. You will have a choice of either that or leave. The bank will have a complete sense of humour failure if you try to avoid signing.
It's not a case of them monitoring your trades - it's a matter of you reporting your trading activity to them as part of their compliance procedures.
Most likely you will be given a list of anything that you are not allowed to trade in or must get permission to trade. This list will be updated periodically and you will receive the updates and have to acknowledge receipt. Annually (i think) you will have to report all your investements to the compliance officer.
This procedure is more to protect the bank than it is to protect you but you will have your contract cancelled if you refuse to sign (at a speed that may surprise you if you have never work in a trading environment before)
As far as IR35 goes I'm no expert but as this is a result of your having access to restricted trading information either by overhearing conversations or data in databses etc rather than by just being an employee I don't think it's any indication of being an employee.
KLeave a comment:
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How exactly would the client be checking your trading activity anyway? And if you don't have access to sensitive financial information then you're not actually performing any "insider trading" are you?
BTW this would also apply to opening and closing Maxi-ISAs, which I'm sure many of the employees do without telling the compliance team.Leave a comment:
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Yes, but not when those rules and regs are necessary for the performance of the job itself - in other words, if they would apply anyway like Security Clearance or adherence to SOX, then they are IR35 neutral.Originally posted by electronicfur View PostYou're right, it is the insider information bit I should have mentioned, not money laundering. My excuse is that I had just spent one and half hours in the most mind-numbing training about both
The reasons I thought it might also affect IR35 is that I thought one of the things the revenue look at is whether you are expected to conform with the clients rules and regulations for permanent employees.
Cheers,
EFLeave a comment:
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You're right, it is the insider information bit I should have mentioned, not money laundering. My excuse is that I had just spent one and half hours in the most mind-numbing training about both
The reasons I thought it might also affect IR35 is that I thought one of the things the revenue look at is whether you are expected to conform with the clients rules and regulations for permanent employees.
Cheers,
EFLeave a comment:
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First off, does not sound like it has anything to do with money Laundering rules, more like insider trading prevention. ("Money laundering regulations" is as abused in the financial sector as "terrorism prevention" is in the western world)
Next, unless it is a legal requirement which I doubt (you don't say who you have to report the information to or who's permission you have get but if it is the clients it most defiantly is not a legal requirement) if it is not in your contract you have no actual requirement to do any of it, especially the last the last bit about being unable to sell any share for 28 days. (if they insisted on that I would demand that they compensate me for any losses incurred because of it)
IR35 would be immaterial in this, no matter how you looked at it.
My recommendation is nod yes, don't sign anything and then forget about.
ps: Just remember though the rules about insider trading, if you gain access to privileged information while working at your clients and use it to make a profit then you can be in serious trouble with the law.Leave a comment:
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Complying with client's Money Laundering rules
As part of their anti-money laundering rules, the bank I'm contracting for, require staff to get permission for any personal trading activity. eg buying/selling shares, requires permission on a per trade basis, and a rule which states you cannot sell a share within 28 days of purchase.
They were not clear about how this affects contractors. Contractors in the bank have told me they have been asked to comply with these rules, but no-one has questioned it. I have asked for clarification.
Would it be a problem to comply with these employee rules with regard to IR35?
Cheers,
EF
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