A question on Immediate Family members. I know that if a grandmother, sister etc is a fee paying client, you treat them exactly the same as any other fee paying client. What about immediate family members, i.e. wife and kids? Also, what are the clear rules on beneficial ownership. What does it require of you? Thanks!
here is my understanding, and please correct me if i’m wrong cause I’m iffy on this too. immediate family (spouse, kids) are assumed to have beneficial ownership. these accounts, and any other with clear beneficial ownership get last priority. other family, (grandparents, siblings, inlaws) beneficial ownership is not assumed, treat as any other client.
If beneficial ownership is present, then they get last priority. Otherwise treat all fee paying accounts equally.
thanks guys, that clears it up. and benefiical ownership is only you and your kids right. what if people live with you who arent your spouse/kids?
Our firm’s compliance says those you live with or have a beneficial interest with.