BLOG
Learn more about what we do while staying up-to-date with industry regulations and trends
801-896-0951
 The best place to hide a dead body is page 2 of Google search results
How often to you look at page two when you search for something on the web? Statistics have shown that as many as 91% of "Googlers" never go past the first page of Google when performing a search. With stats like that, page two or beyond can be a great place to hide, and considering the size of the web, an advisor's web presence can be easily buried deep in the search results presented by Bing or Google. Case in point. If you were to search for my name, "James Cella", just one of the top ten results (page one of Google) are positive hits for me. The others? Those are the other "James Cella's" in this world. You know, the one that's a hollywood producer, a singer in Europe, and a lawyer in New York. Yeah, those guys. So maybe the saying is true. You can hide a dead body on page 2 of Google. On the flip side, Eagle Eye correctly identified me (James Cella) correctly ten out of the first ten results found by system. That's 100% accuracy in this case and a huge improvement on Google's 10% accuracy mentioned above. If you wanted to go even deeper, every result in the top 30 result is a positive hit for me in Eagle Eye and if you were to look at the top 50, only 4 results were false positives. Those are staggering numbers compared to what we have found on Google or Bing. So even though one can hide a dead body or more realistically an outside business activity, an undisclosed social media account, website or blog on page two (or beyond) on Google, one can't easily hide them from Eagle Eye. 2/12/2019
Compliance with FINRA Rule 2210 The “Communications with the Public” Rule FINRA 2210 states that “an appropriately qualified registered principal of the member must pre-approve each retail communication before the earlier of its use or filing with FINRA's Advertising Regulation Department ("Department").”
“Retail Communications” include all electronic formats as well. In addition to supervision approval: “Each member shall establish written procedures that are appropriate to its business, size, structure, and customers for the review by an appropriately qualified registered principal of institutional communications used by the member and its associated persons. Such procedures must be reasonably designed to ensure that institutional communications comply with applicable standards.” Our Eagle Eye and SQWatcher applications support your compliance program when it comes to complying with this rule. Our innovative Eagle Eye application will search the internet and allow supervisors to identify and discover your registered advisors’ online presence. Our multi-query processes and dynamically designed algorithms provide more accurate search results for supervisors to quickly review. With our automated documentation and reporting features, you will have everything you need including when a result was found, who reviewed it, comments that were made and timestamps on every action taken during the online supervision of your registered advisors. SQWatcher will supervise and archive all websites, even those not hosted with your approved providers. It will organize web-page changes into a manageable, easy to use workflow. Automatic triggers based upon your requirements will notify you of pending reviews. These products were developed for the compliance supervisors who are looking for automated solutions to replace manual processes that prove to be ineffective and tedious. Note: NASD Rule 2210 has been superseded by FINRA Rule 2210. Source: https://www.finra.org/rules-guidance/rulebooks/finra-rules/2210  What controls does your firm have in place to aid you in discovering DBAs if your advisors are not disclosing them? In December 2018, FINRA released their annual “Report on Examination Findings”. This report serves as a resource for firms to strengthen their compliance programs and supervisory controls. This report focuses on selected observations from recent examinations that FINRA considers worth highlighting because of their potential significance, frequency, and impact on investors and the markets. “FINRA’s examination, surveillance and risk monitoring programs play a central role in supporting FINRA’s mission of investor protection and market integrity.” “DBAs and Communications With the Public” were one of the findings highlighted in this report. FINRA continues to find that many registered representatives are not compliant with FINRA Rule 3270 in trying to conceal their outside business activities. “FINRA observed that certain firms did not maintain sufficient WSPs and controls, or provide adequate disclosures regarding the use of DBA names.” What controls does your firm have in place to aid you in discovering these DBAs if your advisors are not disclosing them? How do you know what your advisors are putting online using their “DBA” name? That is where our Eagle Eye application steps in. Our multi-query processes and dynamically designed algorithms provide more accurate online search results for you to quickly review. Our new “Risk-Based Review Process” provides added system intelligence, enhanced lexicon capabilities, system learning, and detailed evaluation of your search results. Eagle Eye automatically discovers your riskiest advisors and focuses your attention to where it’s needed. FINRA’s exam report also focused on registered representatives’ use of DBA names on their websites, social media accounts, seminars, and more that failed disclose they were working on behalf of a firm. FINRA also found many instances where there was no hyperlink to FINRA’s BrokerCheck. “Some registered representatives’ websites did not contain a “readily apparent reference” and hyperlink to FINRA’s BrokerCheck on the web pages that included the representatives’ professional profiles, as FINRA Rule 2210(d)(8)(A) (Communications with the Public) requires.” With precision our Eagle Eye application can find undisclosed websites, and social media accounts using the DBA names owned by your registered advisors. Enabling you to supervise and make sure that your advisors are following FINRA requirements. Then, our SQWatcher application can help you monitor, review, approve, and document changes made to your registered representatives’ websites. (Learn more about this application) These two applications become force-multipliers in your supervision program.
The annual FINRA Exam Findings Report is helpful for firms in bringing non-compliance issues to the forefront. It is a good time to reflect and examine on your own WSPs and supervisions procedures. With over 15 years of working in the financial industry, SiteQuest Technologies is an industry leader in providing innovative compliance and supervision software applications and website solutions for the financial industry. Contact us today with your DBA supervision concerns. Read the entire December 2018 FINRA Exam Findings: http://www.finra.org/sites/default/files/2018_exam_findings.pdf Related Article: Are You Finding Everything You Need to Monitor? |
About James CellaJames Cella is the President of a growing and innovative compliance technology provider called SiteQuest Compliance. James is a customer-centric individual and focuses on building and sustaining positive and lasting relationship with his clients and partners. James and his family are "super fans" of University of Utah Football and have attended nearly every home game since 2002. Go Utes! Archives
June 2021
Categories
All
|
RSS Feed
2/18/2019