Broker-dealers must stay on their toes amid coronavirus: Finra

Broker-dealers must stay on their toes amid coronavirus: Finra
B-Ds should consider having employees and advisers work remotely or from home due to the pandemic, regulator says
MAR 09, 2020

On Monday, the Financial Industry Regulatory Authority Inc. encouraged the 3,600 broker-dealers it oversees to dust off their business continuity plans as the coronavirus continues to spread.

Finra last gave its members guidance on how to operate during an outbreak of a severe illness during the swine flu outbreak in 2009.

In the context of a pandemic, broker-dealer firms should consider having employees and financial advisers working in remote or backup offices or from home, according to Finra's notice to members Monday. They should remember to inform Finra if they make such arrangements, the regulator said, and be on the lookout for additional cybersecurity events such as phishing.

"The risk of cyber events may be increased due to use of remote offices or telework arrangements, heightened anxiety among associated persons and confusion about the virus," according to Finra.

Finra also urged broker-dealers to remain focused on their clients, an increased number of whom may call or use their online accounts given the large moves in the markets.

Broker-dealers "are encouraged to review their [business continuity plans] regarding communicating with customers and ensuring customer access to funds and securities during a significant business disruption," Finra's notice stated. "If registered representatives are unavailable to service their customers, member firms are encouraged to promptly place a notice on their websites indicating to affected customers who they may contact concerning the execution of trades, their accounts, and access to funds or securities."

Latest News

SEC bars ex-broker who sold clients phony private equity fund
SEC bars ex-broker who sold clients phony private equity fund

Rajesh Markan earlier this year pleaded guilty to one count of criminal fraud related to his sale of fake investments to 10 clients totaling $2.9 million.

The key to attracting and retaining the next generation of advisors? Client-focused training
The key to attracting and retaining the next generation of advisors? Client-focused training

From building trust to steering through emotions and responding to client challenges, new advisors need human skills to shape the future of the advice industry.

Chuck Roberts, ex-star at Stifel, barred from the securities industry
Chuck Roberts, ex-star at Stifel, barred from the securities industry

"The outcome is correct, but it's disappointing that FINRA had ample opportunity to investigate the merits of clients' allegations in these claims, including the testimony in the three investor arbitrations with hearings," Jeff Erez, a plaintiff's attorney representing a large portion of the Stifel clients, said.

SEC to weigh ‘innovation exception’ tied to crypto, Atkins says
SEC to weigh ‘innovation exception’ tied to crypto, Atkins says

Chair also praised the passage of stablecoin legislation this week.

Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest
Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest

Maridea Wealth Management's deal in Chicago, Illinois is its first after securing a strategic investment in April.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.