FINRA wins permanency for COVID-related work rules.

FINANCIAL Industry Regulatory Authority; UNITED States. Securities & Exchange Commission

The Financial Industry Regulatory Authority (FINRA) has received approval for two remote work policies that accommodate practices that became common during the COVID-19 pandemic. One policy allows firms to sign up for a three-year pilot program to test remote inspections of branch offices, while the other allows brokerage supervisors' homes to be designated as "non-branch offices" subject to in-person inspections once every three years. These policies aim to ensure the continuation of work arrangements that were widely embraced during the pandemic. While some industry representatives see this as a victory, others express concerns about the potential for fraud and the limitations of remote inspections. FINRA's proposals include restrictions to prevent fraudulent activity, such as prohibiting residences from being used to store records or documents and requiring the use of firm IT systems for electronic communications. The North American Securities Administrators Association appreciates the changes made to the policies in response to their concerns. Participating brokerages will have to provide regulators with quarterly reports detailing inspections and any findings resulting from those reviews. The pilot program is expected to start on July 1, 2024. [Extracted from the article]

Copyright of Financial Planning is the property of Arizent and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)