What action is required when an individual opens a personal account?

When an individual opens a personal account, it is necessary to notify their employer and provide duplicate trade confirmations. This requirement stems from the need for compliance with regulatory standards and internal policies aimed at preventing conflicts of interest, fraud, or unauthorized trading activities.

By informing the employer, the individual ensures that the firm is aware of their personal trading activities, which allows for adequate monitoring and adherence to rules regarding personal account transactions. The provision of duplicate trade confirmations keeps the employer informed about the trades executed in the personal account, further enabling oversight and transparency.

This practice helps maintain the integrity of the firm and protects both the employee and the institution from potential regulatory breaches. Such measures are especially important in investment banking, where the risk of insider trading and ethical conflicts may be heightened due to access to sensitive information.