FINRA Re-Files Remote Inspection Pilot Proposal With SEC

Posted on April 18th, 2023 at 1:20 PM
FINRA Re-Files Remote Inspection Pilot Proposal With SEC

From the desk of Jim Eccleston at Eccleston Law 

The Financial Industry Regulatory Authority (FINRA) has resubmitted a proposal to the Securities and Exchange Commission (SEC) in order to permit firms to conduct remote inspections as part of a pilot program.

The latest submission includes relatively marginal revisions and largely follows an amended proposal that previously was filed in December 2022. For instance, the proposal would require participating firms to provide FINRA with more data, including the number of locations examined. FINRA additionally limited the criteria for which branches would be disqualified from remote inspections if they had engaged in proprietary trading.

The proposal is intended to permit eligible firms to enroll in a three-year pilot program for conducting remote examinations of branch offices. FINRA previously adjusted criteria to reduce the number of eligible firms after state securities regulators raised concerns. FINRA estimated that nearly 2,884 small firms, 183 mid-size firms, and 166 large firms would be eligible to enroll in the pilot program.


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

Tags: eccleston, eccleston law

Return to Archive



You guys are good!

Mike L.


September 22, 2023
State Regulators Maintain Opposition to FINRA's Remote Supervision Pilot Program

The North American Securities Administrators Association (NASAA) and the Public Investor Advocate Bar Association (PIABA) has consistently opposed the Financial Industry Regulatory Authority's (FINRA) proposal for a voluntary three-year pilot program for remote inspections.

September 21, 2023
SEC Charges Private Equity Firm Over Fee Disclosure Failures to Affiliate

The Securities and Exchange Commission (SEC) has charged Prime Group Holdings LLC, a private equity firm specializing in alternative real estate asset investments, with
inadequate disclosure of millions of dollars in real estate brokerage fees paid to a brokerage firm owned by its CEO.

September 20, 2023
SEC Orders Legendary Capital Founder and REIT Advisors to Pay Nearly $5 Million

Corey Maple, co-founder of non-traded REIT sponsor Legendary Capital, has agreed to a $100,000 civil penalty to settle charges brought by the Securities and Exchange Commission (SEC).