Securities Litigation

On May 28, 2020, FINRA issued its Regulatory Notice 20-16 sharing firms’ WFH practices observed to date.  They include common practices adopted across most industries, as one would expect.

During the TRANSITION TO WFH, firm practices included:

• Increased Customer Assistance through outreach and web-based communications, to ensure customers knew how to access representatives and other resources;
• Location Monitoring & Contact Lists to know where staff were and ensure they knew how to stay in touch;
• Increased Support for staff, including more frequent training and communications, and increased tech support; and,
• Heightened Focus on Confidentiality and Cybersecurity issues, including reminders, training, and monitoring of heightened risks.

WFH SUPERVISION efforts included:

• Increased Communications;
• More Frequent Meetings, with greater regularity;
• Increased Supervision, through supervisory checklists, remote affirmations, and encouragement to “over-escalate” issues to supervisors and management; and,
• Monitoring of Emerging Risks.

TRADING SUPERVISION included additional precautions attempting to replicate virtually various “line of sight” supervisory techniques, including:

• Pre-screens with reminders and affirmations;
• Surveillance through lowered reporting thresholds and increased scope of trade or exception reporting; and,
• New Monitoring Techniques, for example, always-on web-cams, frequent check-ins or roll-calls, and recording of real-time chat rooms.

FINRA Reg. Notice 20-16 is here.