FINRA Extends Remote Inspection Provision Through 2024

Posted on October 19th, 2023 at 4:19 PM
FINRA Extends Remote Inspection Provision Through 2024

From the desk of Jim Eccleston at Eccleston Law 

The Financial Industry Regulatory Authority (FINRA) has informed the Securities and Exchange Commission (SEC) of its intention to continue a temporary program permitting member firms to inspect their brokers' offices remotely.

FINRA officials submitted a request to the SEC on September 22, stating they intend to extend the program until June 2024 unless the SEC raises objections. The program, originally set to expire at the end of the year, was initially introduced in 2020 when in-person inspections were suspended due to COVID-related shutdowns. According to AdvisorHub, FINRA previously extended the relief measure through the end of this year, facing opposition, particularly from state regulators and plaintiff lawyers, regarding its proposed long-term solutions.

Additionally, FINRA has a second rule proposal awaiting approval from the SEC to decrease the examination frequency for brokers' home offices from annually to once every three years. In May, a FINRA official acknowledged the industry's concerns about the transition to new inspection requirements when the pandemic-era exemption from in-person inspections expires at the end of the year but stated that it was too early to decide whether FINRA would seek an extension of that temporary relief.

 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law, finra

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