EY 🐠 not sure how to handle independence if I am joining advisory, am I considered a covered person? Should I be expecting to sell investments? Coming rom a non auditing firm so this is new for me

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It seems like most of my stocks are considered proscribed (a lot of tech companies like Apple, amazon, google, etc). EY folks don’t own shares in any of these companies outside of ETFs?

likefunny

Correct, you also will need to sign up for automated broker feed with your individual brokerage/retirement accounts, the process for that is explained pretty well on the internal site, easier than it sounds. But yes even not being a covered person we are not allowed to own stock in companies EY audits (e.g Apple), so I’d say selling depends on what you hold. If you’re purely in mutual funds or ETF’s you’re fine because that’s considered indirect ownership, but individual stocks is where there are limits.

smart

Additionally, even if I’m not a covered person, there are a ton of companies stocks categorized as proscribed, I’m assuming for non covered persons as well

Op: correct. It sucks BIG time. Missed all downside in AAPL and AMZN

We audit most of the Silicon Valley, OP. You will have to get rid of all proscribed stocks unfortunately. Welcome to an audit firm.

The guidance for completing independence is very detailed including checklists, and it does vary by level. Don’t skim over that; the firm takes it very seriously and non-compliance results in docks to your pay and if significant enough, could be the cause for separation.

Also you can consult with Independence, if you need to, which you may want to do as this is your first time dealing with this.

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