Conflict of interest

freeze4real

Hi guys,

A mate got offered a job in a fund accounting firm and according to the contract he's not allowed top place an trade any financial instrument.

He trades stocks, fx and commodities and indices. I read the contract where it says that and it said not trade company securities, does that mean a financial derivative on the company e.g CFD, equity or option or it means not allowed to trade any instrument at all.

Cheers

Sorry should have picked better Title.

N.B With traders I know they're not allowed to trade or reveal their trading strategies online. One of my siblings work for a trading form and I had to disclose my trading accounts to them(company) but banning someone from investing or dealing financial instruments is a bit steep.

Helpneeded86

What a joke to be fair fund accounting does not offer you any real insight that would give you an advantage surely?

freeze4real

Helpneeded86 wrote: »

What a joke to be fair fund accounting does not offer you any real insight that would give you an advantage surely?

Those that price funds will know the fair value of an asset e.g one could price FB at 40 while its trading at 45. This one could say its overpriced and when something is overpriced you short it.

roro2

I would take that as meaning any type of financial instrument. These types of clauses are standard enough in financial institutions, often they say you must seek approval before trading rather than a complete ban, but a ban is easier for them to manage. But even with places that insist on pre-approval for a trade, they will likely put a stop to frequent trading on the basis that it interferes with your day job.

If he wants to continue he will have to do it on the side and take his chances - or look for a different job.

arrowloopboy

freeze4real wrote: »

Those that price funds will know the fair value of an asset e.g one could price FB at 40 while its trading at 45. This one could say its overpriced and when something is overpriced you short it.

Not that simple,if the masses don't know/agree with you ,you wont make a bean.

freeze4real

roro2 wrote: »

I would take that as meaning any type of financial instrument. These types of clauses are standard enough in financial institutions, often they say you must seek approval before trading rather than a complete ban, but a ban is easier for them to manage. But even with places that insist on pre-approval for a trade, they will likely put a stop to frequent trading on the basis that it interferes with your day job.

If he wants to continue he will have to do it on the side and take his chances - or look for a different job.

How would they know that you're trading if you don't disclose it to them ?

roro2

freeze4real wrote: »

How would they know that you're trading if you don't disclose it to them ?

That's the key I suppose. Small chance but big penalty!

freeze4real

roro2 wrote: »

That's the key I suppose. Small chance but big penalty!

Yea, I wouldn't myself and wouldn't advise anyone to.