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

TESTIMONIALS

Previous
Next

I cannot thank you enough for your efforts. You have proven to be a valuable resource

Jim T.

LATEST NEWS AND ARTICLES

April 17, 2025
SEC Charges Hedge Fund Founder with Fraud in $4 Million Scheme

The Securities and Exchange Commission (SEC) has charged Alan Burak, founder of Never Alone Capital LLC, with orchestrating a fraudulent investment scheme that raised approximately $4 million from investors.

April 16, 2025
GWG Bondholders Offered Settlement Worth Just Cents on the Dollar

Distressed investors who purchased $1.6 billion in GWG L bonds may soon receive a small fraction of their original investment under a proposed settlement.

April 15, 2025
Stifel Ordered to Pay $133 Million in FINRA Arbitration

Stifel Financial’s retail broker-dealer must pay nearly $133 million in damages following a FINRA arbitration tied to Miami-based advisors' structured note strategy.