Growth of wealth managers leads to customer data risks (AdvisorHub)

The SEC wants firms to tighten controls at their branch offices, including taking measures to improve customer data protections and overall branch supervision. FrontLine’s Founder and President Amy Lynch is exclusively quoted on the reasoning behind the SEC’s recent industry alert focused on branch office compliance weaknesses. A focal point, she notes, is the SEC’s message to large retail wealth advisors, including those that have grown through mergers and acquisitions and now include even larger…

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ComplianceAlert

SEC Cites Weaknesses in Branch Office Oversight

A new Risk Alert (“the Alert”) focused on branch office supervision and customer data safekeeping has been issued by the Division of Examinations (“EXAMS”). This is the third Alert of 2023, and it discusses Staff findings from examinations conducted on both registered investment advisers and broker-dealers. The SEC discovered issues during these examinations in relation to Reg S-P and customer data. Most weaknesses found were in relation to vendor and technology systems that have access…

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Seminar features Amy Lynch on marketing rule best practices

Founder and President Amy Lynch has been selected as a featured speaker for the NSCP’s Educational Seminars series. Ms. Lynch will present on the SEC’s Marketing Rule and its recent developments in a virtual event taking place on May 3rd from 12:00pm to 1:15pm EST. She will offer her expertise as part of a three person panel discussing the impact of the Rule since its compliance date and how firms have fared in overcoming challenges…

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Why the SEC wants to speak with you

A major SEC objective this year is to increase the frequency of their onsite examinations. Firms need to not only prepare for an inspection of their compliance program, but also for SEC in-person interviews of key firm employees. These employees may include the CEO, COO, CFO, Head Trader, CIO and Senior Analyst, among others. The interviews of key firm employees during an SEC’s onsite portion of an exam allow the SEC to get a better…

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SEC exam outlook explained in new op-ed, plus podcast rewind (Real Assets Adviser)

Founder and President Amy Lynch’s BoardRoom blog piece, “Inside the mind of the SEC” has been published as an op-ed feature by Real Assets Adviser, appearing in its magazine’s April 2023 issue. Originally produced by FrontLine Compliance, the article is written from the perspective of Ms. Lynch, a former regulatory insider and now the head of a leading compliance consultancy. She explores the history of the SEC’s examination program and describes the challenges faced…

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