Emily Gordy and
Alexander Madrid and associate
Natasha Cooper wrote a Sept. 4, 2020, Corporate Counsel Business Journal
article about what investment advisers and broker-dealers should anticipate after
the first wave of COVID-19.
In their article, the authors discussed how firms can reduce the increased
risk of financial, regulatory and reputational harm that can result from
individuals seeking to exploit a crisis like COVID-19 by perpetrating
frauds or Ponzi schemes that target firms or customers.
State regulators, FINRA and the SEC have increased warnings in this time of
market volatility and heightened cybersecurity concern. The authors warned
that it is imperative for “firms to stay alert, follow up on red flags,
connect the dots, and remind their registered representatives and financial
advisers to stay alert and escalate issues or concerns” and to “remain
vigilant regarding potential operational errors, especially when volatile
markets tend to magnify the impact of errors.”