What Is a Trusted Contact on a Brokerage Account?

A brokerage trusted contact is an emergency contact, not a second account owner. FINRA describes it as someone the firm may contact in limited circumstances, such as concerns about account activity or difficulty reaching you.

What can a trusted contact do?

The role gives your brokerage another person to call when help is needed. It can be a family member, close friend, attorney, accountant or another person you believe will respect your privacy and be willing to assist.

The firm discusses only certain limited information in specific circumstances. Naming someone does not give them a general right to inspect your finances whenever they want. Ask your brokerage to explain its trusted-contact disclosure so you understand the scope.

What authority does the role not provide?

FINRA is explicit: a trusted contact cannot make account decisions or execute transactions just because they hold that role. The designation does not make them a power of attorney, guardian, trustee or executor.

If your goal is to let someone trade, handle incapacity or inherit assets, those are different needs. Discuss the appropriate documents with your brokerage and, where needed, a legal professional. Do not rely on a trusted-contact field to accomplish a different job.

How should you choose and maintain the contact?

Consider someone who is reachable, knows how to contact you and will handle a call from your firm responsibly. Tell them what the role means before listing them. That conversation can prevent confusion if the brokerage calls unexpectedly.

You can ask the firm to add or update a trusted contact at any time, and FINRA notes that more than one can be established. Revisit the details when phone numbers, relationships or availability change. Providing a trusted contact is not mandatory, though FINRA encourages investors to consider it.

Frequently asked questions

Can my trusted contact withdraw my money? The designation itself provides no transaction or decision-making authority.

Must my trusted contact be a relative? No. FINRA lists friends and professional contacts among the possible choices. Choose someone you trust to respect your privacy and help when needed.

Sources and further reading: FINRA, Trusted Contacts (https://www.finra.org/investors/investing/investment-accounts/brokerage-accounts/trusted-contacts).