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

Return to Archive

TESTIMONIALS

Previous
Next

I am so glad I found you! Wow! I appreciate your help, concern and guidance.

RB

LATEST NEWS AND ARTICLES

July 26, 2024
Kentucky Advisor Sues LPL Financial for Alleged Corporate Raid

A Kentucky advisor, Mark Lamkin, has filed a lawsuit against LPL Financial, claiming the independent broker-dealer orchestrated a corporate raid that resulted in the loss of his firm’s entire book of managed assets.

July 25, 2024
FINRA Plans Fee Increases Amid Rising Costs and Losses

The Financial Industry Regulatory Authority (FINRA) has announced plans to raise fees for its approximately 3,300 broker-dealer member firms. According to AdvisorHub, the self-regulator faces soaring costs, as detailed in its annual report published at the end of June.

July 24, 2024
Raymond James Settles with Oregon Over Excessive Commissions

Raymond James recently settled a case with Oregon's Division of Financial Regulation (“DFR”), agreeing to pay nearly $200,000 over allegations of charging excessive commissions to retail investors.