Article

When Markets Fall, Investor Complaints Rise. Is Your Compliance Program Prepared?

By Steve Leivent, SVP, Co-General Manager, SS&C Advent

“Dow plummets as inflation hits 40-year high.”

Recently we see headlines like this every day. Inflationary cycles bring more market volatility. The “rising tides” of the past decade are starting to ebb. When markets fall, investor complaints to regulators tend to rise. The SEC reported “a significant uptick in tips, complaints, and referrals” in 2020 when the initial shock of the pandemic sent the markets into a tailspin and opened a window for schemers and scammers. As we again enter an unfamiliar and uncertain economic terrain, ensuring your compliance program is in order is essential. Wealth management firms operate with the best intentions.