Email Us 1-866-251-6920

Pandemic Prompts Brokerages to Seek Relaxed In-person Inspection Requirements

February 22, 2021

This week, InvestmentNews published a story focusing on the member firms and trade associations representing them told FINRA their pandemic experiences have shown that supervisors don’t need to look over the shoulders of registered reps physically to ensure they’re following the rules.

In December, the broker-dealer self-regulator issued a regulatory notice seeking public comment on whether it should change its rules, operations, or administrative processes to reflect lessons learned during the pandemic. With the comment letters due on February 16th. Foreside’s broker-dealer compliance team who oversees supervision requirements for over 1,700 reps affiliated with our 17 broker-dealers, submitted a comment letter to FINRA on January 26, 2021. Our experts believe that firms should decide for themselves whether to conduct remote or in-person inspections.

“A firm should be able to determine the appropriate office visit schedule and the manner of visitation (in-person, virtual or telephonic) based on an internal risk assessment, which would include, among other factors, the number of people located in an office location, the type of activity conducted from an office location and the disciplinary history of the representatives.”

Click here to learn what other industry experts had to say in their comment letters in the full story on InvestmentNews.