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A third Party Account is an account that is managed for the benefit of a customer by another party, such as investment adviser, trustee, or attorney. These individuals will be allowed to enter orders for the benefit of the customer.
Investors who are the owners of a brokerage account may want to have that account managed by a third party. The authority of that party is must evidenced in writing and detail the extent to which that party may act. The principal of the firm must accept the power of attorney or trading authorization prior to allowing any third party to enter orders, or to obtain information regarding the account.