Quick story: The Big-5 host plenty Big-Idiots I was on an institutional money team at the time................... only a few clients, each had big dollars.
Firms must adhere to a UMIR policy, Universal Market Integrity Rules, some IIROC stuff.
Well, I had been at this firm just shy of two years.
The old secretary hated me because I never put the firm first.
There's an unspoken rule that everybody puts the firm before the client.
I never followed that; always said it's their money, it's their choice. Respect their capital.
Well, our firm was doing a $200mm underwriting for XYZ corp, so they sent out a memo that we are not to transact in XYZ corp until the $200mm common shares were sold.
Deal hadn't been announced yet.
I am on the horn with Mr X, he says he wants out of XYZ corp and I say that's good enough for me. Put in an "unsolicited" sell order for XYZ corp.
Wasn't an hour that past by before the secretary skipped gleefully down the hallway to the Manger's office, closed-door meeting, top secret, as if they were mapping out how to end the Cold War 1980's.
She gets back to her desk, won't speak to me, won't even look my direction.
I get a call later in the day, serious meeting set for later, they say I've broken UMIR rules. A big deal, compliance violation they say, maybe lose my job.
Well, roll in, compliance on the horn, manager red-faced talking about my conduct.
2 minutes into the meeting I told them they're all wrong.
Client's money, they can do what they want.
Who am I to stop Mr X from exiting XYZ with unsolicited order?
Said I don't care what they do, they're all wrong.
Never heard back...
The secretary went from gleeful to sheepish.
You see, if you don't bleed blood the same colour of the firms logo, you're a black sheep.
Banks don't like black sheep, they want regular sheep.
Remember that.
What a spiteful secretary. She should have been fired long before I arrived.
Yeeeesh.
Another reason why working for Kasking is always better than working for the Big-5.
The bigger the firm, the more clowns it's hiding.