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Big 5 Banks - Do They All Force Spouse to Switch Investment Accounts to Their Institutions

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  • Feb 15th, 2023 8:03 am
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Feb 13th, 2023 7:57 pm
tribe1689 [OP]
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Jul 30, 2008
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Feb 13th, 2023 7:57 pm

Big 5 Banks - Do They All Force Spouse to Switch Investment Accounts to Their Institutions

Question for any of you working at a Big 5 Bank job (head office/non-branch).

My spouse works a white collar job at a head office for a financial firm (a multi-billion dollar competitor to the big 5). She is not a stock trader of any sort. Currently, we have the choice that I as the spouse am using investment accounts (margin/TFSA/RRSP) for stock trading with a broker affiliated with them, or simply that they monitor my account. I chose the latter, as I am an active trader, and use margin loans.

My spouse is considering applying to some jobs at a few of the Big 5 Canadian banks (head office type jobs). My question is whether, as part of any employment at the Big 5 Banks, do they insist that both the spouse and myself switch to their brokerage (i.e. to work at RBC you absolutely have to use RBC Direct Investing, or CIBC you have to use CIBC Investor's Edge), or are they ok with monitoring an account as well. I ask because margin interest rates with the big 5 banks are extremely, closing in on 10%, almost 2x higher than I am paying for now.

I appreciate any responses.
13 replies
Feb 13th, 2023 11:37 pm
morpheus_1987
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Jun 19, 2009
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Feb 13th, 2023 11:37 pm

My guess is your spouse has access to financial information that is not generally available to the public in the nature of her duties. I doubt they will force you to switch, but your spouse is just required to declare conflicts of interest quarterly or something like that. I'm not sure if they go as far as monitoring your accounts. I had a similar discussion with an acquaintance some time ago and the declaration was the gist that I got out of it.
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Feb 14th, 2023 12:08 am
Redsanta
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Feb 14th, 2023 12:08 am

Dont play with margin during these interest rate hikes and high downside volatility...thought you should know better
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Feb 14th, 2023 7:23 am
tribe1689 [OP]
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Jul 30, 2008
938 posts
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Feb 14th, 2023 7:23 am

Thanks for the concern, but respectfully, please let's stick to the topic. Just looking for insights from people working at big 5 if the banks make all employees and spouses switch, or if that's not the case (i.e. ok to monitor external accounts like my spouse's current institution is ok with and/or they did not even ask this for a head office job).

I'd assume between the big 5, ton of people or their spouse work for there, so insights would be appreciated! Looking for direct experience of folks who got jobs at the big 5.

Thanks again.
Feb 14th, 2023 7:36 am
Trooob
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Oct 25, 2003
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Feb 14th, 2023 7:36 am

Doesn't really help you here, but in the states if you or your spouse works in finance, be it bank or hedge fund, any role, you must declare all household trading accounts to your employer, and all trades must be pre cleared by your company, and you must hold it for at least 30 days, there's a few exceptions like ETFs with > a certain amount of members, and FX

Holy run on sentence batman :)

It's probably not a company policy thing, but a trading regulation, I'm sure something similar occurs in Canada.
Feb 14th, 2023 8:37 am
MisterWhitfield
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Jul 19, 2022
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Feb 14th, 2023 8:37 am

I worked for 3 different banks (out of the 5 big ones) but things may have changed by now.

If your wife is just thinking about applying ... don't worry about it.

If she applies, and if HR calls her back, then ask the question directly to HR! Much better than asking RFD
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Feb 14th, 2023 9:44 am
fogetmylogin
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Nov 13, 2013
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Feb 14th, 2023 9:44 am

Trooob wrote: ↑ Doesn't really help you here, but in the states if you or your spouse works in finance, be it bank or hedge fund, any role, you must declare all household trading accounts to your employer, and all trades must be pre cleared by your company, and you must hold it for at least 30 days, there's a few exceptions like ETFs with > a certain amount of members, and FX

Holy run on sentence batman :)

It's probably not a company policy thing, but a trading regulation, I'm sure something similar occurs in Canada.
It is the same in Canada. At least for certain roles. I know people who have the restriction at big 5.

If you tell her she shouldn't apply so you can keep your day trading habit er I mean job she should dump your a$$.

Even asking the question is probably a redflag to HR.
Feb 14th, 2023 11:46 am
TodayHello
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Dec 8, 2007
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Feb 14th, 2023 11:46 am

There are levels to restrictions.

Most Bank employees are not restricted.
Some are restricted from trading the Bank's stock.
Some are restricted from trading anything whatsoever unless they have prior approval first.

So, the answer to your question is ... it depends.
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Feb 14th, 2023 12:59 pm
Gman00
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Jan 3, 2023
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Feb 14th, 2023 12:59 pm

TodayHello wrote: ↑ There are levels to restrictions.

Most Bank employees are not restricted.
Some are restricted from trading the Bank's stock.
Some are restricted from trading anything whatsoever unless they have prior approval first.

So, the answer to your question is ... it depends.
Yes, I can't really see a bank teller knowing anything about their bank that would be considered inside information, but whoever prepares the bank's quarterly or annual financial statements, they would need some kind of monitoring and restrictions on their personal trades.
Feb 14th, 2023 5:09 pm
tribe1689 [OP]
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Jul 30, 2008
938 posts
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Feb 14th, 2023 5:09 pm

Yup, I'm just trying to get verifiable examples if someone has a non-branch job (so specifically at) head office that did not have to move all their investments and their spouses investments to the bank's broker.

I also assume that the answer *should be* that it depends. But I want to make sure that's the case with an actual person that has first hand info. Asking the interviewer would likely be a red flag, that's why I'm asking at head office that works at a big 5 head office.
Feb 14th, 2023 5:39 pm
GTA12345
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Jun 18, 2020
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Feb 14th, 2023 5:39 pm

tribe1689 wrote: ↑ Yup, I'm just trying to get verifiable examples if someone has a non-branch job (so specifically at) head office that did not have to move all their investments and their spouses investments to the bank's broker.

I also assume that the answer *should be* that it depends. But I want to make sure that's the case with an actual person that has first hand info. Asking the interviewer would likely be a red flag, that's why I'm asking at head office that works at a big 5 head office.
No offense, but why is it a red flag unless you plan to break the rule they tell you? If no rules, do as you please. If rules, then I'll assume she either turns job down or takes and you follow the rule.

Red flag requires behaviour to flag.

FWIW, we're one in Big 5, head office ops, no restrictions. Not in anything to do with finance or lines of business. Have other Big 5 accts.
Feb 14th, 2023 8:08 pm
fogetmylogin
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Nov 13, 2013
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Feb 14th, 2023 8:08 pm

GTA12345 wrote: ↑ No offense, but why is it a red flag unless you plan to break the rule they tell you? If no rules, do as you please. If rules, then I'll assume she either turns job down or takes and you follow the rule.

Red flag requires behaviour to flag.

FWIW, we're one in Big 5, head office ops, no restrictions. Not in anything to do with finance or lines of business. Have other Big 5 accts.
They have the attitude that someone applying for these jobs should already know this. I get if she works for a non-bank competitor she will have most of the transferable skills but the gap will be corporate culture and asking this would highlight it. Imagine a casino dealer trying to keep her job when her HS Football husband is applying for an NFL coaching job. Even asking hey can my spouse still work in the gambling industry is ridiculous. Unless you are talking about a low level job where this is legit deal breaker for you guys.
Feb 14th, 2023 10:24 pm
mkl38s
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Jan 21, 2014
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Feb 14th, 2023 10:24 pm

They are IIROC members so yes, both your wife & you and your adult children living in the same household will have to move all your investment accounts over so they can monitor. no short term or day trading anymore. Buying and selling stock will have to check for restricted list first and then request for approval before you can execute the transaction. no short selling, etc

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