Is Julie, an RR at ABC Securities, permitted to open a personal securities account with XYZ Brokerage?

Julie, as a registered representative (RR), is allowed to open a personal securities account with an outside brokerage, such as XYZ Brokerage, but she must first obtain permission from her firm, ABC Securities. This requirement is in place to ensure that the firm can monitor her trading activities for compliance with regulations and manage any potential conflicts of interest that might arise from her personal trading.

The need for permission serves to protect both the firm and the representative. By informing the firm and receiving approval, Julie demonstrates that she is adhering to the regulatory expectations set by FINRA, which require RRs to act in the interests of their clients and the integrity of the market. Each firm may have its policies regarding personal accounts, but the general rule within the industry mandates that RRs must disclose and receive approval before engaging in personal trading with another brokerage.

This framework helps mitigate risks related to insider trading, the misuse of non-public information, and other ethical concerns related to personal trading activities.