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A hybrid examination would be a viable, if temporary, approach to comply with regulations while protecting the health and safety of examiners, branch employees and advisors. Sander J. Ressler COVID-19 cases are on the rise again nationally, and it’s incumbent on professionals in the wealth management industry to try to limit the spread of the…

In recent months, as the coronavirus pandemic has made remote work a new norm, broker-dealers, branch offices and financial advisors have found technological workarounds to the in-person interaction that has traditionally characterized how we work together in the wealth management space. Yet one area in which substitutes for face-to-face interactions will not be sufficient is…

The SEC’s work over the past 10 months with broker/dealers, advisors and regulatory agencies has prepared everyone for compliance by the end of June, Chairman Jay Clayton said today. Despite the ongoing spread of COVID-19 in the United States that has forced many firms to implement business continuity plans and work remotely, the SEC is holding fast…

The Covid-19 pandemic has thrown a wrench into some firms’ ability to comply with Regulation Best Interest in time for its June 30 compliance date, according to the Securities and Exchange Commission’s head examiner. “It is certainly something that’s been raised and we’re aware of it,” said Peter Driscoll, director of the agency’s Office of…

As the coronavirus pandemic spreads, advisors’ business continuity plans may need to include much more than video chats and Slack channels. In 2016, the Securities and Exchange Commission proposed a rule that would require investment advisors to put business continuity and transition plans in place. But the rule was never finalized. So there’s no clear guidance on…

Advisors who take an up-front transition check without disclosing it to clients face potential legal and regulatory downside risks. Sander J. Ressler As the recruiting wars between independent broker/dealers intensify, firms in this space are offering ever-larger up-front recruiting bonuses to top-producing financial advisors to get them to jump firms. In certain cases, larger independent…

How should the SEC and FINRA modernize their regulations to better serve the interests of RIAs, broker/dealers, and individuals and family investors? Clive Slovin, president and CEO, The Strategic Financial Alliance Too often, advisers find themselves structuring their businesses based not on the needs of their clients or what will deliver the best service experience,…

When it comes to the potential liabilities associated with compliance failures, the numbers don’t lie. Consider a recent arbitration award case involving a small, independent broker-dealer on the East Coast. Regulators slapped the firm with a $3 million fine, holding it, its CEO and its chief compliance officer jointly and severally liable — which means if the broker-dealer is…

A new firm in Florida wants to tackle a common problem that independent B-Ds have supervising and inspecting their far-flung branch offices, otherwise known as offices of supervisory jurisdiction, or OSJs. With the SEC’s new Regulation Best Interest looming, there are concerns in some quarters about OSJs’ ability to comply with the new rules. Sander…

Independent b/ds are on the hook for their reps’ behavior, even those thousands of miles away. A new compliance consultancy wants to help firms close that gap. Broker/dealers are required to examine their offices of supervisory jurisdiction once a year. For a home office that’s thousands of miles away, that can be a tall task.…