Regulatory Outlook | 11.11.20
SEC Alert Flags 'Multi-Branch' Risks
The SEC's exam division has flagged deficiencies it has found with advisors that work in numerous branch offices. The issues highlighted by the SEC concerned violations of custody and compliance rules, investment advice, and advertising. The agency's Office of Compliance Inspections and Examinations (OCIE) said the “Multi-Branch Initiative" model “may pose certain risk factors that advisors should consider in designing and implementing their compliance programs and in supervising personnel and processes occurring in branch offices.” The OCIE says risks may be higher “when the main and branch offices have different practices." Officials said the majority of examined advisors were cited for one deficiency related to regulations.
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