Brokerage Accounts

Investor Bulletin: Why You Should Consider Adding a Trusted Contact to Your Account

August 25, 2025

The Securities and Exchange Commission’s (SEC’s) Office of Investor Education and Advocacy, FINRA and the North American Securities Administrators Association (NASAA) are issuing this Investor Bulletin to urge investors to consider adding a “trusted contact person” to their brokerage account.

When you open a new retail brokerage account or update your account information, your brokerage firm will request that you give them the name and contact information of a “trusted contact person.” While you aren’t required to provide this information, there are several important reasons to give your investment professional the name of someone you trust, and the SEC’s Office of Investor Education and Advocacy, FINRA and NASAA urge you to consider the request.

What is a trusted contact person?

A trusted contact person is like an emergency contact—a person you authorize your brokerage firm to contact in limited circumstances, such as if your investment professional has trouble reaching you or has a reasonable belief that your account might be exposed to possible financial exploitation.

Naming someone as a trusted contact person does not give that person any authority to act on your behalf, execute transactions or engage in activity in your account.

A trusted contact person must be age 18 or older. They may be a family member, close friend, attorney, accountant or another third party you believe would respect your privacy and be willing to help. You may also choose to add more than one trusted contact to your account. Finally, you may change your trusted contact in your account as often as you wish.

Why would you add a trusted contact person to your brokerage account?

Adding a trusted contact person to your account puts your brokerage firm in a better position to keep your account safe. For example:

If your brokerage firm cannot reach you, a trusted contact person may help your firm ensure that your current address and contact information are correct.
A trusted contact person may help your brokerage firm respond to possible financial exploitation or fraud in your account and protect your account’s assets.
If your brokerage firm suspects that you’re experiencing a health issue, a trusted contact person may help your investment professional protect your account’s assets.
A trusted contact person may help your brokerage firm verify the identity of any legal guardian, executor, trustee or holder of a power of attorney on your account.

What authority does a trusted contact have on your account?

Naming someone a trusted contact person only allows your brokerage firm, in limited circumstances, to contact that person to discuss certain information about your account.

Naming someone a trusted contact person on your account:

does not give that person any authority to learn about your account balance, execute trades or engage in any other transactions in your account;
does not give that person any authority to make decisions about your account; and
does not make that person a power of attorney, legal guardian, trustee or executor.

How can you add a trusted contact person to your brokerage account?

Brokerage firms may ask you to add a trusted contact person when you open a new brokerage account or when you access your existing brokerage account. Many brokerage firms send notices to you, via email or regular mail, that include instructions for adding a trusted contact person to an account. Before clicking on any link in an email notice about a trusted contact person, make sure you verify that your brokerage firm sent the email.

If you’d like to add a trusted contact person to your brokerage account, contact your firm or your investment professional at any time and ask how to add a trusted contact person to your account.