I sell insurance but work in a company that also does financial services. I refer potential clients who want to buy securities to other employees or managers. I don't give financial advice or sell financial services personally. I am opening a ROTH IRA with Zecco. I don't know how to answer the questions about being a non-professional subscriber and a non-professional trader. For example, the language of the contract/agreement that I am supposed to agree to says this:
"You are not employed by a bank or an insurance company or an affiliate of either to perform functions related to securities or commodity futures investment or trading activity."
I am employed by an insurance company but I don't perform functions directly related to trading activity. I would think that insurance brokers could open an IRA without a problem as a non-professional trader/subscriber. Assumnig that Zecco can clarify the situation for me, am I a non-professional trader and a non-professional subscriber?
You have any securities licenses?
You need to know exactly what statutes they are trying to comply with/circumvent, and then have your attorney do a quizzing of you in light of the case law under the statutes and make some form of transmittal concerning this question.
Entities often ask questions of the above nature to either exempt them from liability or to charge you with fraud should a problem arise.
Curt Harrington Patent & Tax Law Attorney Certified Tax Specialist by the California Board of Legal Specialization PATENTAX.COM This communication is general information and not legal advice, and does not create an attorney-client relationship. This communication should not be relied upon as any type of legal advice. Please note that no attorney-client relationship exists between the sender and the recipient of this message in the absence of either (1) a signed fee contract and (2) remission of an agreed-upon retainer. Absent such an agreement and retainer, I am not engaged by you as an attorney, nor is any other member of my law firm.
2 lawyers agree
Securities / Investment Fraud Attorney
If I understand your question, you're opening your own IRA and the disclosure is asking as to whether you're a professional trader (or not) based on the question on the account form? The answer to the question is "no," you are not a "professional trader." But "yes" you are employed by an affiliate that performs securities related functions, which in your case is the referral of clients to others. That would mean that you would likely have to provide duplicate statements for your IRA to your branch manager. Not a big deal really. If your firm doesn't want the duplicate statements they'll tell you.
The foregoing is not legal advice nor is it in any manner whatsoever meant to create or impute an attorney/client relationship.