Advisory firms also reported encountering various impediments to their work during the Covid-19 crisis, primarily having to do with paperwork and technology, SIFMA found. Eighteen firms cite having to manually process mail, forms, checks and other documents; 11 cite medallion signature requirements; 13 cite notary public requirements; and 18 cite other physical signature requirements as hindering their work, according to the report.
Twelve firms reported that technology to enable working from home hindered their work during the crisis, and four firms cited regulatory constraints on work-from-home arrangements as an obstacle, SIFMA says.
Despite some challenges, firms have increased their use of technology and have expanded IT support to help advisors keep in touch with clients, the survey finds.
The emergence of the global pandemic Covid-19 in the first quarter of 2020 caused severe economic and capital markets shocks. Sharp price declines and spikes in equities markets resulted. Though markets remained open and functioning as intended, “investors across the board were anxious to understand the short and long-term impact on their finances and portfolios,” SIFMA said.
SIFMA’s Private Client Services Committee said they conducted the survey to assess how quickly the financial advisory industry activated near universal and immediate remote access necessary to allow work to continue.