FINRA, the North American Securities Administrators Association (NASAA), and the SEC all recommend that clients have at least one listed Trusted Contact on their investment accounts. And we here at SBC second that recommendation. But what is a Trusted Contact and why do all of these organizations recommend the use of one?
A Trusted Contact is someone that you authorize us to contact on your behalf should we have concerns about your health or welfare, or are unable to otherwise contact you directly. This person can be anyone that you choose and trust—a family member, close friend, a professional such as your lawyer or accountant, or virtually anyone you wish who is at least eighteen years of age. You may be under the mistaken impression that if we have concerns about you or your welfare that we could contact one of your beneficiaries or a close family member that we are aware of, but due to privacy restrictions, that is not the case. We are only legally able to contact those who you have listed in writing as a Trusted Contact. You can have more than one Trusted Contact, and you can remove a Trusted Contact at any time in writing. Having a Trusted Contact provides you with an additional layer of security because it allows us the ability to speak with someone who knows you well if the need ever arises.
Please note that having a Trusted Contact does not confer any legal obligations or authority to that person. This person would not have trading authority or other ability to access your funds or securities, or otherwise transact any business on your behalf.
If you would like to list one or more Trusted Contacts, please contact our office and we’ll have the required Forms sent out to you. If you are not sure if you have a Trusted Contact currently listed, please reach out and we will look up any Trusted Contacts currently on file. Should you have any additional questions about this topic, feel free to contact your account representative. You can find our general contact information at sbcwealth.com/contact.
While listing a Trusted Contact is completely voluntary, it is highly recommended as additional protection, so in the off chance we ever notice anything amiss, we will have the ability to contact someone you know and trust. You can review an informational posting relating to Trusted Contacts from the SEC on the Investor.gov website at investor.gov/introduction-investing/general-resources/news-alerts/alerts-bulletins/investor-bulletins-trusted-contact.