Who Works At A Mutual Fund?

What is the policy towards employees having their own personal accounts at mutual funds? Is there a specific list of brokerage firms that you can have your accounts at? I’m talking about mutual funds that don’t have brokerage arms (I imagine that Fidelity requires all of its employees to hold their accounts internally). Thanks.

Some firms are more strict than others. At a minimum you are required to report all your investment positions quarterly. Depending on your role and your firm you may be subject to much stricter rules. I’ve never heard of not being allowed to invest at another firm though. In fact, keeping you from doing so might be illegal; unethical at the very least. As long as you disclose everything you should be fine. Check with your compliance dept just to be sure.

I used to work at one. it was a boutique firm but was still really strict. We had a brokerage firm so we had to have the account there. If you dont, industry standard is pretty much that you have to get prior approval before you trade anything at any time by a compliance team member. Employees there are considered “control persons” or “non-control persons”. Control persons are designated as people who know what is going on in the funds day to day and will have stricter controls. All in all though, with current regulations, be ready to have a long-term horizon on what you buy. My firm went ahead and put a mandatory 90 day holding period on all purchased positions, unless you had an extraordinary circumstance, which was then well documented by compliance. In other words, put your money in the funds. :slight_smile:

My firm waived all fees and our fund performing probably at the top 3 in its class. So while there’s no restriction in investing at other funds, I don’t see any reason to.