Withdrawing From a Minor’s Account, Do You Know Your Policies?

FINRA reminds member firms of their responsibilities for supervising UTMA and UGMA accounts. UTMA/UGMA accounts are custodial accounts that allow for the transfer of funds, securities and other assets to minors without the need for a formal trust. Many times these accounts are set up by a parent or family member for the minor.  Because of this, sometimes representatives feel that the relationship is with the custodian for the account instead of the minor and continue to process withdrawal requests even after the minor reaches the age of majority.  This reminder provides valuable information for those supervising these types of withdrawal requests.