Thursday, July 1, 2010
When is an account, not an account?
In this case it would be appropriate to treat the household as the account, even though it may not legally be an account; it's a "virtual" account, yes? THIS is what you're managing, and you're using the pieces because individually you may not be able to execute your strategy. And therefore, the pieces wouldn't be in a composite by themselves, but the entire household would be. Make sense?
And, the firm's policies and procedures should reflect this, too!