Question about investment advisers and the SEC.

[Jara sang]

I know that investment advisers have to be licensed or registered with the SEC. Does this mean that each employee they have working for them has to be bonded? What if an investment adviser had somebody working for them that was undocumented, unlicensed, and unqualified to handle sensitive information such as an investor's IRA account information? Any help would be appreciated. Thanks in advance.

[msturgis524]

1. Advisors have to be licensed

Support staff does not. Generally the broker dealer will be insured against employee malfeasance. I believe, but am not certain that it is required. Any employee that advises clients needs to be appropriately licesnsed and registered etc. Is there a specific circumstance you have a question about?

[Jara sang]

2. So, it's not a violation?

To have, somebody being paid "under the table", who has absolutely no accountability, working in the office of the adviser? Hypothetically, let's say, account information is all over the office and this guy is paying a maid from Guatemala $8.00 an hour, she is an un-bonded worker and has access to sensitive material. That just doesn't sound correct to me.

[OPERATIONMINDCRIME]

3. Sounds like a scenario that could play out in a million businesses across

America every single day.

I fail to see the problem, unless you reallllllllllly just don't trust maids from Guatemala LOL

[Jara sang]

5. No, that was hypothetical.

I am actually the "under the table" paid, undocumented worker. I couldn't believe that this guy I was working for had all this account information just lying around. Thousands and thousands of accounts.

[OPERATIONMINDCRIME]

7. I'm sorry to say but you have me a bit confused...

...is your gripe with undocumented workers or accountants? :shrug:

[Jara sang]

8. I don't have a gripe.

Just wondering if the guy who hired me violated any SEC regulations. If he is breaking the law, the SEC should be informed, don't you think?

[msturgis524]

4. Depends on what they do there

A Investment advisor can certainly hire someone to clean their office. Is it a violation to have a undocumented maid from Guatemala cleaning that office? Sure, but no more so than it would be to have a undocumented maid from Guatemala cleaning a hotel or anywhere else for that matter. Most financial service company take that sensitive information rather seriously. I work in the field and while I have no idea who comes in and cleans after work. I can tell you that our computers are encrypted and out files locked. I can also tell you that the companies that are hired are bonded against thest information or physical. Hypothetically I could see a smaller operation hiring a undocumented person under the table. I am not aware of any securities industry law that would deal with it. I agree that doesn't seem correct. From a liability point of view that would seem like a dumb thing to do.

[Jara sang]

6. see post 5

Thanks for your help.