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FINRA Launches Pilot Program for Remote Branch Inspections

Posted on September 12th, 2024 at 10:37 AM
FINRA Launches Pilot Program for Remote Branch Inspections

From the desk of Jim Eccleston at ÍøÆØ³Ô¹Ï

According to InvestmentNews, a total of 741 FINRA member firms have joined a three-year pilot program assessing remote inspections of branches and offices. The pilot program allows eligible firms to fulfill inspection obligations without physical visits, provided they document a risk assessment and maintain satisfactory supervisory procedures for inspections and reporting to FINRA.

FINRA proposed this initiative in 2022 following the widespread adoption of remote inspections during the pandemic. However, it has faced opposition from the North American Securities Administrators Association (NASAA).

The participating firms represent 22 percent of all FINRA member firms, 67 percent of all registered representatives, and 53 percent of registered branches. Large firms have shown the most willingness to participate, with 60 percent of firms with 500 or more employees joining the pilot, compared to 47 percent of mid-size firms and 18 percent of small firms.

 

ÍøÆØ³Ô¹Ï LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law, finra

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