My Employer Wants to Know What I’m Investing in for My Childs College Fund. Is this allowed?

• Monday 12 May 2025

A client recently asked us a question out of the blue that led to a deep dive into the area of reporting requirements and compliance for certain company executives and consultant/contractors.

They asked: “If I open an investment account for my child, do I need to report it to my employer?”

After reviewing their situation, the answer was: Yes, you probably do.

What we have discovered is that if you control or influence the account, regardless of whose name is on it, you’re likely considered the beneficial owner. What matters to your employer isn't legal ownership, but decision-making authority: who buys, sells, or allocates assets. This applies for spouses, partners and children.

Why Do Employers Need to Know?

If you work in a regulated role such as audit, finance, R&D, legal, or leadership at a publicly traded or closely scrutinized company-your employer is obligated to mitigate risks around:

• Insider trading
• Conflicts of interest
• Market abuse or ethics violations

These firms often adopt a broad compliance lens, requiring reporting not only of your investments but also those of:

• Your spouse or domestic partner
• Your children, even if over 18
• Anyone whose investments you influence, including through joint or custodial accounts

This is especially common in the Big Four, global banks, publicly traded multinationals, and consultancies in tech and life sciences.

What Do You Have to Report—and How Often?

While specifics vary by employer, the general expectations include:

Most employers will ask you to pre-clear transactions or submit holdings reports, often via internal compliance platforms.

Is There a Workaround?

Yes, but only if you keep everything above board.

Trying to avoid disclosure—even for good intentions—can:

• Breach your partner’s or your own employment contract
• Trigger HR or compliance investigations
• Lead to disciplinary action or termination

As the employment law expert we spoke to noted, “While you can’t be forced to disclose… you may be forced to leave the firm if you don’t.” The safest route is full transparency.

Instead, consider the following:

• Use passive funds or ETFs: These are often exempt from disclosure or pre-clearance requirements.
• Discretionary portfolio managers: Some firms allow this route if you hand over full control and confirm no involvement in investment decisions.
• Transfer ownership at the appropriate time (e.g., when your child reaches maturity and assumes control).

What About Adult Children or Members of a Family Trust:

In Ireland, 18 is the age of majority, but investment control doesn’t automatically transfer. Most providers require formal transfer of ownership. Until that’s done:

• You remain the beneficial owner
• You retain compliance obligations under your employer’s policies

Whether your child is 6, 18, or 28-if you’re still managing the account, you’re still responsible.

Options: Keep or Transfer Control

If your child is not yet capable of managing investments, or you wish to maintain oversight, you must continue disclosures until control officially changes.

What This Means For You

For executives in regulated sectors, even seemingly small investment activities (like setting up a college fund or gifting shares) can have significant compliance implications.

Be proactive:

• Check your firm’s Code of Conduct or compliance handbook
• Speak to your HR or Ethics & Compliance department
• Seek financial planning advice to structure things correctly from the start

Final Thought

This is a nuanced area many professionals overlook-until compliance knocks on the door.

If you're uncertain about your reporting obligations, or want to ensure your financial plans for your family remain both effective and compliant, we can help

• Insight