Advisors have a great deal of concern about a number of regulatory risks. Nearly one in four (22%) indicate they are “extremely” concerned with the regulatory risk from cybersecurity. While other risks don’t rise to the same degree, risks around data integrity, social media, fraud and anti-money laundering occupy a large portion of advisors’ mindshares.
Areas of least concern include wrap-fee programs, about which half of advisors have no concern at all. Robo advisors (2%) and recidivist brokers/representatives (3%) commanded the smallest share of advisors’ compliance efforts in the past year, reflecting a general lack of concern around those areas.