Which of the following is TRUE regarding the requirement to notify an employer about a personal account?

Notification to an employer about a personal account is required prior to executing the first trade in that account. This requirement is in place to ensure that the employer is aware of any potential conflicts of interest that may arise from personal trading activities. By notifying the employer before any trading occurs, the firm can establish guidelines and monitor activities to comply with regulatory standards and protect against insider trading or other violations.

This proactive approach provides transparency in personal trading, allowing the firm to maintain ethical standards and safeguard their reputation. Such rules are typically outlined in the firm's code of ethics or compliance manual and underscore the importance of responsible trading practices among employees.