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 branch networks. Ms. Lynch comments that the SEC expects a firm’s compliance program to be flowing down to all its branches with adequate supervision. The SEC’s notice likely means additional regulation is coming, explains Ms. Lynch, and is in step with the cybersecurity rule proposal previously issued. See AdvisorHub, “SEC Sends Warning on Protecting Client Info at Branch Offices“