Consider Adding a Trusted Contact to Your Accounts
When you open a new retail account or update your account information, your brokerage firm will request that you give them the name and contact information of a “trusted contact person.” It is not mandatory that you do so — but there are a number of very important reasons to give your broker the name of someone you trust.
What is a “trusted contact person?”
A “trusted contact person” is a person that you authorize your brokerage firm to contact in limited circumstances, such as if your broker has trouble reaching you or has a reasonable belief that your account may be exposed to possible financial exploitation. A trusted contact person must be age 18 or older.
Why would you add a “trusted contact person” to your brokerage account?
- If your brokerage firm cannot reach you, adding a trusted contact person to your brokerage account may help your firm ensure that your current address and contact information are correct.
- Adding a trusted contact person to your brokerage account may help your brokerage firm respond to possible financial exploitation or fraud in your account and protect your account’s assets.
- If your brokerage firm suspects that you are experiencing a health issue, adding a trusted contact person to your brokerage account may help your broker confirm your current health status.
- Adding a trusted contact person to your brokerage account may help your brokerage firm verify the identity of any legal guardian, executor, trustee or holder of a power of attorney on your account.
How can you add a “trusted contact person” to your brokerage account?
You may be asked to add a trusted contact person when you log on to your brokerage account online. Many brokerage firms send notices to you, via email or regular mail, that include instructions for adding a trusted contact person to an account. Before clicking on any link in an email notice about a “trusted contact person,” make sure you verify that your brokerage firm sent the email.
If you do not receive a notice or if your brokerage firm has not yet requested a trusted contact person, and you would like to add a trusted contact person to your brokerage account, contact your firm or your financial professional and ask how to add a trusted contact person to your account.