Tr?id=566623520170033&ev=PageView&noscript=1

ÍøÆØ³Ô¹Ï

FINRA Set to End Temporary Remote Inspection Relief with New Rules

Posted on March 15th, 2024 at 11:52 AM
FINRA Set to End Temporary Remote Inspection Relief with New Rules

From the desk of Jim Eccleston at ÍøÆØ³Ô¹Ï

The Financial Industry Regulatory Authority (FINRA) announced that it will conclude its temporary relief from in-person inspection requirements, implemented due to the COVID-19 pandemic, on May 31.

According to AdvisorHub, two new rules approved by the Securities and Exchange Commission (SEC) in November will replace this temporary relief. Effective June 1, the first rule alters the definition of a residential supervisory location, extending the inspection cycle for home offices from annually to once every three years.

The second rule establishes a remote inspection pilot program starting July 1, allowing certain firms to conduct virtual exams of broker offices. Firms can enroll in the pilot from June 1 to June 26. Beginning June 1, firms can treat brokers' offices as residential supervisory locations and must submit a list of these locations by October 15.

AdvisorHub reports that some firms, like Morgan Stanley, have allowed brokers to work from home for up to 90 days annually. FINRA advises those firms to assess whether an increase in remote locations necessitates approval as a material change. FINRA’s notice did not specify the threshold for a material change, but FINRA has promised additional guidance.

The development of these rules began in the summer of 2022. Despite objections from investor advocates and state securities regulators, the SEC approved them, citing consistency with broader obligations to supervise for fraud and investor harm. The North American Securities Administrators Association (NASAA), representing state regulators, later supported the rules.

 

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

Tags: eccleston, eccleston law, finra, sec

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

 


It was really fun seeing you fight for us. You have an amazing way of thinking out of the box.


 

Beth M.

LATEST NEWS AND ARTICLES

1783615970 Law
July 9, 2026
FINRA Suspends Former Branch Manager for Supervisory Failures Linked to Excessive Trading and Churning

A former regional branch manager at a broker-dealer has agreed to Financial Industry Regulatory Authority (FINRA) sanctions after the regulator found that he failed to supervise registered representatives who engaged in excessive trading and churning of customer accounts.

1783525964 Law
July 8, 2026
SEC Sanctions David Lerner Associates for Regulation Best Interest Violations

David Lerner Associates has agreed to settle Securities and Exchange (SEC) charges alleging violations of Regulation Best Interest (Reg BI) that resulted in unnecessary costs to retail investors, according to InvestmentNews.

1783434190 Law
July 7, 2026
Private Credit Funds Face Mounting Redemption Pressure as Investor Sentiment Shifts

A surge in investor redemption requests has intensified pressure on private credit funds, raising concerns about liquidity and long-term stability across the asset class, as reported by The Wall Street Journal.