SEC Warns Advisors To Be “Vigilant” As Market Volatility Expands

Posted on March 17th, 2022 at 10:57 AM
SEC Warns Advisors To Be “Vigilant” As Market Volatility Expands

From the Desk of Jim Eccleston at Eccleston Law:

The Securities and Exchange Commission (SEC) has warned financial advisory firms and broker-dealers to be vigilant in analyzing trading risks as market volatility continues to surge.


The SEC has specifically urged firms to review and update their risk management policies. The SEC additionally stated that firms should stress test trading position amid “current events and potential market movements.” In essence, the SEC is reacting to heightened market volatility as investors respond to the rapidly-changing geopolitical atmosphere following Russia’s invasion of Ukraine.


The SEC has further recommended that advisory firms should collect margin from counterparties as much as possible. Also, firms are expected to regularly make efforts to determine counterparty aggregate positions, according to SEC staff.


Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

 
 

Tags: eccleston, eccleston law, SEC

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