At some point, your advisor or financial institution may ask you to provide the name of a trusted contact person on your account. While this request is optional, it is an important tool that can help protect you from fraud, financial exploitation, and other unexpected situations. Financial institutions are encouraged to obtain trusted contact information as part of broader efforts to help safeguard investors.
What Is a Trusted Contact?
A trusted contact is similar to an emergency contact for your financial accounts and serves as an additional point of contact if concerns arise.
It is someone you authorize your financial institution to contact in limited situations, such as if:
- We are unable to reach you
- We observe unusual or suspicious activity
- We have concerns about possible financial exploitation
- We need assistance verifying information related to your account
A trusted contact can be a spouse, adult child, family member, close friend, attorney, accountant, or another person you trust to help in these situations.
What a Trusted Contact Is Not
One of the most common misconceptions is that a trusted contact gains authority over your account.
They do not. Simply naming someone as a trusted contact does not give them authority over your account.
A trusted contact:
- Cannot access your account
- Cannot place trades
- Cannot withdraw funds
- Cannot make financial decisions on your behalf
A trusted contact is simply someone we may contact if concerns arise. They do not replace a Power of Attorney, trustee, executor, or other authorized party.
Why It Matters
Life can be unpredictable.
You may be traveling, dealing with a medical issue, recovering from an emergency, or simply difficult to reach. In other situations, a financial institution may notice activity that appears inconsistent with your normal patterns.
Having a trusted contact gives us another way to better understand the situation and help ensure we have the information needed to respond appropriately if concerns arise.
Who Should You Choose?
Consider someone who:
- Knows you well
- Can be reached if needed
- Respects your privacy
- Would be comfortable helping in an unexpected situation
You can update your trusted contact information whenever your circumstances change.
Helping You Protect What Matters Most
At BEAM Wealth Advisors, protecting our clients involves more than managing portfolios. It also means helping clients recognize and navigate the increasing risks of fraud, financial exploitation, and scams.
Providing a trusted contact is one simple way to add an extra layer of protection. While a trusted contact cannot access your account, make decisions on your behalf, or conduct transactions, they can serve as an important resource if we are unable to reach you or have concerns about potential financial exploitation.
We encourage you to review your trusted contact information periodically and ensure it remains current. If you are unsure whether you have a trusted contact on file, or if you would like to add or update one, please contact your advisor or our office. We would be happy to answer any questions.
A trusted contact is a simple step that may provide an additional layer of protection for your financial accounts.
Amy Bets
Chief Compliance Officer
