Can Financial Advisors Work From a Coworking Space? We Asked Our Head of Technology

Key Takeaways

• Financial advisors can work from coworking spaces if the workspace meets their firm’s security and compliance requirements.
• The right technology matters: Financial services firms can have their own network at Workbar, including private SSIDs, VLANs, dedicated bandwidth and wired connectivity.
• Security goes beyond the network. Access control, IT backup and support, compliance and audit requirements, and even how a company connects its own printer can matter.
• Flexibility and security can coexist. The right coworking space can provide both.
• Your IT team can work directly with Workbar’s local-to-Boston technology team to configure the workspace around your firm’s requirements.

We’ve been noticing something across Workbar: more financial advisors, CFP® professionals, analysts, wealth managers and other financial services professionals are using our coworking spaces.

And they tend to ask much better technology security questions than the average member.

That’s because for someone in financial services, choosing where to work isn’t just about finding a desk, strong Wi-Fi and good coffee. Their firms have cybersecurity, privacy, supervision, recordkeeping and compliance requirements that affect where and how they can work.

And the questions go well beyond Wi-Fi.

Who can access the space, and can that access be tracked? What happens if the internet goes down? Who fixes an IT issue? Can the company verify the location if it faces an audit or compliance review? Can it install its own printer in an office and connect it securely to its private network?

In other words, a financial firm’s IT team isn’t necessarily evaluating “coworking.” It’s evaluating another workplace where its employees may conduct business.

Lucky for them, our technology team is right here in Boston.

You’re not calling someone in another country when you have a question. In fact, chances are that while you’re working at your desk or in your office, you’ll pass Mike McLaughlin on your way to refill your coffee.

And there’s a funny story behind how Mike came to Workbar.

When Sarah became CEO in 2018, let’s just say the technology and security requirements of coworking weren’t what they are today. As coworking has evolved, so have the needs, and requirements, of the companies using it.

Sarah knew Mike from their days working together at Regus. Neither of them would probably admit how far back those days go, but they have stories about solving client technology needs as early as 2002 at one of Regus’ first Boston locations on Atlantic Avenue.

Hang around the two of them long enough and you may even become one of the “lucky” people who gets to see photos of what the communications rooms looked like at the shared office giant back then.

Our advice: escape before photo time.

We sat down with Mike to talk about what financial advisors and financial services firms should know about working from a coworking space, and how Workbar’s technology infrastructure can support the security and compliance requirements that come with their work.

Can financial advisors actually work from a coworking space?

Mike: Yes, provided the workspace and the financial professional's technology setup meet the requirements established by their firm and applicable regulations.

That's an important distinction.

There isn't a blanket rule that says a financial advisor needs to work from a traditional corporate office. FINRA's rules and guidance contemplate securities business being conducted from certain residential and other non-branch locations, although firms remain responsible for supervision and compliance with applicable requirements.

For registered investment advisers and broker-dealers, SEC Regulation S-P also requires covered firms to maintain safeguards to protect customer records and information.

So the question isn't really, "Can I work from a coworking space?"

It's "Can this coworking space support the security, privacy and compliance requirements of the work I'm doing?"

That's the question financial professionals should be asking.

What should financial advisors worry about when using public Wi-Fi?

Mike: The first thing to understand is that not all internet connections are created equal.

Financial professionals routinely access systems containing sensitive customer and financial information. Depending on their firm, they may also be required to use a VPN, multi-factor authentication, approved devices, specific network configurations or other security controls.

That's why we would never tell a financial professional, "We have Wi-Fi, so you're all set."

Their IT or compliance team should determine what is required for their specific work.

Then we can talk about how Workbar can support it.

Let’s just say we have yet to come across a member or company that we can’t accommodate. That’s the benefit of going with a local-to-Boston company. The member works directly with me, and I don’t want to have to tell our Sales Director he lost a deal because I couldn’t accommodate the company’s technology requirements.

What if my company doesn't allow me to conduct certain work over shared Wi-Fi?

Mike: That's exactly the kind of requirement we want to know about. Workbar offers dedicated bandwidth with a wired internet connection for members and companies that require it. That gives them an alternative to relying on a shared wireless network for connectivity-sensitive work.

This can be particularly important for financial professionals who are executing trades, accessing trading platforms, working with large amounts of financial data or whose firm's security policies require a wired connection.

If your IT department says, "For this type of activity, we need you hardwired," that's a conversation we're equipped to have.

Can a financial services firm have its own network at Workbar?

Mike: Yes. Depending on the company's requirements, Workbar can provide dedicated technology solutions including private SSIDs, VLANs, dedicated bandwidth and wired connectivity.

We have all of this information detailed on our website. The important part is that we don't expect a financial firm to adapt its technology policies to whatever happens to be available in the building.

We can work with the firm's IT team to understand what it requires and determine the appropriate setup. For larger financial services teams considering coworking or flexible office space, we encourage their IT teams to be part of the conversation.

Why do dedicated bandwidth and private internet connections matter for financial professionals?

Mike: There are really two different things to think about here.

Dedicated bandwidth is about performance and reliability. Capacity is allocated specifically to that customer rather than relying solely on a shared connection, which can matter when someone is executing trades, transferring data or using applications where consistent connectivity is critical.

A private ISP connection is about control and security. It creates a connection separate from the shared network and can provide a dedicated public IP, which allows a firm’s technology team to do things like allowlist that IP for access to certain systems or apply its own security requirements.

For some financial firms, they need one or the other. For others, they need both.

And sometimes it has very little to do with internet speed at all. It’s about making sure the infrastructure meets the firm’s internal IT, cybersecurity and compliance requirements.

What happens if the internet or IT goes down?

Mike: This is another question sophisticated IT teams ask, and it’s an important one.

Technology is going to have issues from time to time regardless of where you work. The question is what happens next.

Is there proactive network monitoring? Who is responsible for troubleshooting it? Who does your IT department call? What backup or redundancy is in place? And does the person helping actually understand the infrastructure at that location?

That’s one of the advantages of having our technology team here in Greater Boston. Our network monitoring tells us when something goes down before you have to. We know our locations and infrastructure, and we can work directly with a company’s IT team when there’s an issue.

For a financial firm evaluating workspace, the backup plan can be just as important as the primary technology setup. You definitely want to make sure your workspace provider has redundancy in place, with internet service from multiple ISPs.

What are the actual compliance requirements financial advisors need to consider?

Mike: That depends on the firm and the type of financial professional, which is why their compliance team ultimately makes that determination. But there are some major areas firms need to think about.

Protecting customer information. SEC Regulation S-P requires covered financial institutions, including registered investment advisers and broker-dealers, to maintain administrative, technical and physical safeguards for customer records and information.

Cybersecurity. Financial firms need policies and controls appropriate to the risks associated with their technology, systems and sensitive customer information. That can include areas such as access controls, authentication, encryption, incident response and third-party risk.

Supervision. FINRA member firms have supervisory obligations that don't disappear because an employee is working remotely. Firms need systems and written supervisory procedures designed to supervise their associated persons and activities.

Books, records and communications. Broker-dealers also have obligations governing the preservation of certain business records and communications. That's one reason employees may be required to use firm-approved applications and communication channels regardless of where they're physically working.

The important takeaway is that a financial professional's workplace can be part of the firm's overall security and compliance environment.

What about physical access to the workspace?

Mike: This is where security moves beyond the internet connection.

A firm may need to understand how people enter the building or workspace, how access is controlled and whether access can be tracked.

Those questions can become especially important for companies with internal security requirements or compliance teams evaluating where employees are permitted to conduct business. IT teams may also have questions about access to their physical technology stack if they need rack space or other dedicated infrastructure.

Again, every firm is different. Our job is to understand the requirement and determine how we can support it.

What happens if my company needs to verify the location for an audit or compliance review?

Mike: This is something companies are asking about more often.

It’s less about whether the address appears correctly on Google and more about whether the company can document and verify the location as part of an internal compliance process, audit or other review. A compliance team may want information about the location, physical access, technology infrastructure or how an employee's workspace is configured. The specific questions will vary by firm, but the coworking provider needs to be able to respond to them.

That's another reason having a direct relationship between the firm's technology or compliance team and our team can be valuable.

Can my company install its own printer in a Workbar office?

Mike: Yes, and this is actually a good example of how specific these conversations can get.

A financial services company may not want employees printing confidential documents to a shared printer. They may want to install their own printer inside their private office or suite.

Then the IT questions start: How does that printer connect? Is it on the company's private network? Who can see it? How do we keep it separated from other users?

We can work directly with the company's IT team to configure its printer and other equipment based on its network and security requirements. It sounds like a small detail, but for an IT or compliance team, those details matter.

Does that mean financial advisors need private offices?

Mike: Not necessarily. But in many cases, that is the product that best fits their needs and our sales team will help figure it out. Different activities require different levels of privacy.

Someone doing research or general administrative work may be perfectly comfortable working in one of Workbar's coworking neighborhoods. A confidential client conversation might be better suited to a private space. Someone executing trades may want to work from a workstation with a dedicated wired connection.

The point isn't that every financial professional needs to sit behind a closed door all day. It's that their workspace should match the work they're doing and their firm's requirements.

Can my IT department talk directly to Workbar's technology team?

Mike: Absolutely. In fact, for companies with specific security or network requirements, we'd prefer it. Financial services firms often come to us with requirements from their IT or compliance teams. Rather than having an employee try to translate those requirements, our technology team can work with their technology team.

Tell us what you need. We'll tell you what we can support and how we'd configure it.

What should a financial advisor ask before choosing a coworking space?

Mike: When it comes to the technology piece, start with your firm's requirements.

Ask:

• Is dedicated bandwidth available?
• Is there an option for a private public IP?
• Can I get a wired internet connection?
• Can our company have a private SSID?
• Can you support a dedicated VLAN?
• Can our IT department speak directly with your technology team? Are they local?
• How is physical access to the workspace managed and tracked?
• How is access to our IT stack handled if rack space is needed?
• What happens if the internet or another piece of IT infrastructure goes down?
• What backup or redundancy is in place?
• Who troubleshoots technology issues when they happen?
• Can the provider support address verification, compliance reviews or audit requests?
• Can we install and securely connect our own printer or other equipment?
• Where can I have confidential client conversations?
• Are private offices and meeting rooms available when I need greater privacy?
• Can the workspace accommodate the specific security policies established by my firm?

If the coworking provider can't answer those questions, that's useful information.

What Workbar can do is provide professional workspace and technology infrastructure designed to support companies with sophisticated security requirements, including dedicated bandwidth, wired connectivity, private networks, controlled access, local technology support and spaces appropriate for confidential work.

We wrapped up our conversation with Mike by asking what he’s hearing directly from technology teams at financial firms, and why more of them are becoming comfortable with coworking spaces.

Ultimately, technology has evolved because the way financial professionals work has changed, too.

An advisor who lives outside Boston may not need to commute into a downtown headquarters every day just to access a secure, professional work environment. A wealth management firm may want to give employees the ability to work closer to their clients, or closer to home. An analyst may simply need a quiet place to concentrate. And a distributed financial services company may want to give its team access to professional workspace across Greater Boston without taking on another office.

The common thread is that flexibility can’t come at the expense of security or compliance. Financial firms need both, and increasingly, they’re realizing they don’t have to choose between them.

Because ultimately, an IT or compliance team isn't really deciding whether it trusts “coworking.”

It's evaluating a workplace.

And the right coworking provider should be able to answer the same tough questions about technology, security, access and compliance as any other place its employees work.

Workbar provides workspace and technology infrastructure that can support a firm's security requirements. Regulatory, cybersecurity and compliance obligations vary by individual, firm and activity. Each firm is responsible for determining and meeting its applicable requirements.