Husband Trades—Potential Conflicts of interest? Forum

[Anonymous User]

I am starting at a biglaw firm next fall, and my boyfriend and I are talking about marriage. My boyfriend loves investing in the stock market and is an active day trader. I know that big law firms make it very difficult for attorneys to actively trade/invest in the stock market due to potential conflicts, but what about an attorney’s spouse? Once we are married, would he be restricted from trading as well? Are the restrictions, if there are any, as extensive as they are for actual attorneys? (Obviously I would never tell him anything confidential or anything).

[kaiser]

First, see if the issue is addressed in the employee handbook for lawyers at your firm. If not, every biglaw firm has firm counsel that could address the issue for you. Policies differ from firm to firm, so it may be a question for the firm counsel if the handbook doesn't provide an answer. If nothing else, the firm will appreciate that you followed the appropriate channels to clarify the issue, and that compliance is something you care about.

[Anonymous User]

Firms usually have special exceptions that will allow your spouse to trade professionally. You may have to tell the firm ahead of time that your spouse is a professional trader. This is a common question, and the GC will answer it easily (or, more likely, point you to an FAQ about firm trading policies).

Obviously, don't try passing inside information around.

[The Lsat Airbender]

Firms usually have special exceptions that will allow your spouse to trade professionally.

It sounds more like OP's boyfriend trades stocks on the side, which could be better or worse depending on firm policy.

[smile0751]

I am starting at a biglaw firm next fall, and my boyfriend and I are talking about marriage. My boyfriend loves investing in the stock market and is an active day trader. I know that big law firms make it very difficult for attorneys to actively trade/invest in the stock market due to potential conflicts, but what about an attorney’s spouse? Once we are married, would he be restricted from trading as well? Are the restrictions, if there are any, as extensive as they are for actual attorneys? (Obviously I would never tell him anything confidential or anything).

At least at my firm, our policy covers more than just "spouse." I believe significant others and other people in the household are also covered and restricted.

[notinbiglaw]

Don’t screw around with this. Chances are your SO’s policy is even stricter than your firms and both of you need to make sure everything is reported.

Firms don’t fuck around with this. Insider trading is one of the few things in banking that will actually put people in jail.

[Anonymous User]

OP here. Just to be clear, I’m not trying to be shady or “fuck around with” trading. I had simply never considered that this might be an issue (I don’t trade or anything myself) until my boyfriend brought it up. Of course I will read my firm’s policy, but I was just wondering if it will be an issue at all or if firms only care about the individual working for them. It sounds like it could definitely be an issue, so I’ll make sure to consult my firm and always err on the side of caution.

Thanks for all the responses!