FINRA Files to Extend Remote Inspections Into 2024
The temporary relief would allow remote inspections to continue until June 30.
The Financial Industry Regulatory Authority has filed to allow broker-dealers to continue remote inspections until June 30, 2024.
FINRA’s most recent filing extends remote inspections through the end of this year. It started allowing remote inspections in 2020 in response to the COVID-19 pandemic.
Under Rule 3110, FINRA requires its member firms to inspect:
- Offices of supervisory jurisdiction and non-OSJ branches that supervise non-branch locations at least annually
- Non-supervising branch offices at least every three years
- Non-branch offices periodically.
The Securities and Exchange Commission has until the end of December 2023 to approve or disapprove FINRA’s Remote Inspections Pilot Program Proposal.
Given the uncertainty as to whether the SEC will approve or disapprove the proposal by the end of 2023, FINRA said it “believes that the proposed extension is necessary to provide firms the time to prepare for either the resumption of on-site inspections if the Commission disapproves the Remote Inspections Pilot Program Proposal, or alternatively, the implementation of the proposed remote inspections pilot program if the Commission approves the Remote Inspections Pilot Program Proposal.”