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Corporate Account

An account whose client is a company: the three roles the paperwork separates, why onboarding is longer, and which protections may not apply.

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27 of 134 in Brokers & Regulation

A corporate account is an account whose holder is a company rather than a person. The company is the client, and the people involved appear in three separate roles that the paperwork keeps apart: the owners behind it, the directors who bind it, and the individuals authorised to place orders on the account. Onboarding is therefore a company exercise rather than an identity check. A firm needs the constitutional documents, evidence of who ultimately owns it, a resolution showing the account was properly authorised, and separate verification of each individual named in any of the three roles — which is why it takes materially longer than a personal account. Two consequences run past the opening. Regulatory protections often differ for a company client: leverage limits, negative balance protection and compensation arrangements are frequently written for individuals, and whether a small company qualifies is a question of the specific rules rather than of size. And the account has to keep pace with the company: a change of director or of ownership is a change to the file, and an unnotified one is a mismatch when it surfaces.

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