opening Fidelity account, asking for employment info??

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Topic Author
juliewongferra
Posts: 307
Joined: Fri Oct 09, 2009 10:53 am

opening Fidelity account, asking for employment info??

Post by juliewongferra » Mon Jun 17, 2019 10:37 am

Hello friends,

I am int he process of opening a Fidelity brokerage account for the first time and was asked for my employer name and address. The page says that "industry regulations" require this information, but I do not recall answering this questions for Vanguard or T. Rowe Price. Have others been asked to provide this information, and does anyone know why this is required?

Also, as part of the registration process, it asked me if I knew when [family members] were born. I'm not sure how they have this information, I guess one of them has an account and listed me as a beneficiary or something to connect the names? Interestingly, one of the other questions was if I am associated with [house number] whose address is unfamiliar to me, so I wonder if I just stumbled onto a family secret of sorts.

cheers,
jwf
If you aren't familiar with Mr. Bogle and his investment philosophy, then you don't know Jack!

mhalley
Posts: 8308
Joined: Tue Nov 20, 2007 6:02 am

Re: opening Fidelity account, asking for employment info??

Post by mhalley » Mon Jun 17, 2019 11:43 am

This might be part of the know your customer laws, along with some due diligence. It is designed to prevent money laundering etc.
https://www.trulioo.com/blog/kyc/
The relative is probably from your credit report. The house address is prbly also from credit report, and could be an error.
. In the US, the CIP mandates that any individual conducting financial transactions needs to have their identity verified. Provisioned in the Patriot Act, the CIP is designed
to limit money laundering, terrorism funding, corruption and other illegal activities. Other jurisdictions have similar provisions; over 190 jurisdictions around the world have committed to recommendations from the Financial Action Task Force (FATF), a pan-government organization designed to fight money laundering. These recommendations include identity verification procedures.

Topic Author
juliewongferra
Posts: 307
Joined: Fri Oct 09, 2009 10:53 am

Re: opening Fidelity account, asking for employment info??

Post by juliewongferra » Mon Jun 17, 2019 11:58 am

mhalley wrote:
Mon Jun 17, 2019 11:43 am
This might be part of the know your customer laws, along with some due diligence. It is designed to prevent money laundering etc.
https://www.trulioo.com/blog/kyc/
The relative is probably from your credit report. The house address is prbly also from credit report, and could be an error.
. In the US, the CIP mandates that any individual conducting financial transactions needs to have their identity verified. Provisioned in the Patriot Act, the CIP is designed
to limit money laundering, terrorism funding, corruption and other illegal activities. Other jurisdictions have similar provisions; over 190 jurisdictions around the world have committed to recommendations from the Financial Action Task Force (FATF), a pan-government organization designed to fight money laundering. These recommendations include identity verification procedures.
mhalley,

Thank you for your thoughts. I guess that I opened my T. Rowe Price and Vanguard accounts before people laundered money! :D

And I think you're on to something about using my credit report...now that you mention it, I recognize these are the same types of questions that I get when I pull annual credit report (although the annual credit report never asked about family members!)

Thanks again...I was a little thrown off track, but I now have the confidence to complete my application.

cheers!
jwf
If you aren't familiar with Mr. Bogle and his investment philosophy, then you don't know Jack!

mhalley
Posts: 8308
Joined: Tue Nov 20, 2007 6:02 am

Re: opening Fidelity account, asking for employment info??

Post by mhalley » Mon Jun 17, 2019 1:39 pm

Fidelity has great customer service, you won’t regret opening the account.

NativeTxn
Posts: 73
Joined: Mon May 20, 2019 9:32 pm

Re: opening Fidelity account, asking for employment info??

Post by NativeTxn » Mon Jun 17, 2019 1:51 pm

The employment question may be related to it (likely) also asking whether you are employed by a FINRA member firm, another broker-dealer, etc.

If you are, they have to know that as required by law.

erictiger
Posts: 38
Joined: Fri Apr 07, 2017 7:02 pm

Re: opening Fidelity account, asking for employment info??

Post by erictiger » Mon Jun 17, 2019 2:09 pm

My son just opened a Roth IRA at Vanguard last week and was asked the same employment question.

ncbill
Posts: 776
Joined: Sun Jul 06, 2008 4:03 pm
Location: Western NC

Re: opening Fidelity account, asking for employment info??

Post by ncbill » Mon Jun 17, 2019 2:43 pm

"self" always works for me

Topic Author
juliewongferra
Posts: 307
Joined: Fri Oct 09, 2009 10:53 am

Re: opening Fidelity account, asking for employment info??

Post by juliewongferra » Mon Jun 17, 2019 4:15 pm

NativeTxn wrote:
Mon Jun 17, 2019 1:51 pm
The employment question may be related to it (likely) also asking whether you are employed by a FINRA member firm, another broker-dealer, etc.

If you are, they have to know that as required by law.
NativeTxn,

you're exactly correct! Lower in the page, it asked if I am employed by a FINRA member firm. That I understand, I was just surprised that it wasn't just yes-no, but that it was no...*plus* I have to disclose my current employer.

cheers,
jwf
If you aren't familiar with Mr. Bogle and his investment philosophy, then you don't know Jack!

Topic Author
juliewongferra
Posts: 307
Joined: Fri Oct 09, 2009 10:53 am

Re: opening Fidelity account, asking for employment info??

Post by juliewongferra » Mon Jun 17, 2019 4:17 pm

erictiger wrote:
Mon Jun 17, 2019 2:09 pm
My son just opened a Roth IRA at Vanguard last week and was asked the same employment question.
erictiger,

Thanks for the reassurance! I haven't opened a new account with a new company in quite some time, so I wondered if this was a Fidelity-specific thing...it looks like it is indeed industry standard. Thanks again for the response!

cheers!
jwf
If you aren't familiar with Mr. Bogle and his investment philosophy, then you don't know Jack!

Topic Author
juliewongferra
Posts: 307
Joined: Fri Oct 09, 2009 10:53 am

Re: opening Fidelity account, asking for employment info??

Post by juliewongferra » Mon Jun 17, 2019 4:19 pm

ncbill wrote:
Mon Jun 17, 2019 2:43 pm
"self" always works for me
ncbill,

I was tempted just to enter "self"!!! But I also am a scardey cat when it comes to being telling white lies on forms that, I'll bet, say somewhere that misrepresentation is cause for them to close my account, etc. So I usually decide if giving over X information is worth access to Y service. If so, then I move forward, If not, then I find another vendor.

cheers!
jwf
If you aren't familiar with Mr. Bogle and his investment philosophy, then you don't know Jack!

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