09.01.22

SEC Scrutinizing RIA Remote Workers for Possible Violations, Attorney Says

by: Tracey Longo

The U.S. Securities and Exchange Commission (SEC) is focused on the regulatory risks associated with advisors with personnel working from home or other remote locations, securities attorney Richard L. Chen warned in a new blog. The risks of the SEC zeroing in on ethics, Regulation Best Interest and failure to supervise violations “are particularly acute for advisors with multiple branch offices that utilize different operating procedures among the offices and advisors that supervise investment advisor representatives who work remotely and manage their own books of business under the advisor’s umbrella,” Chen said. Advisors “must identify and address the new challenges and risks associated with a dispersed work environment—including the increased challenge of supervising personnel working remotely.”

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