Brokerages firms ask FINRA to revise rules and relax its requirements for in-person personnel supervision
According to an article in Investment News on February 16, member firms and trade associations representing them have told FINRA that in-person personnel supervision may no longer be necessary after a year of working remotely.
Brokerages firms are reportedly asking FINRA to revise rules and relax its requirements for in-person personnel supervision after working remotely due to the coronavirus pandemic.
The Financial Industry Regulatory Authority (FINRA) reportedly issued a regulatory notice 20-42 in December seeking public comment on whether it should change to its rules, operations or administrative processes to reflect lessons learned during the pandemic.
In answer to the request, FINRA member firms and trade associations representing them told the regulator their pandemic experience has shown that supervisors don’t need to physically monitor registered representatives to ensure they’re following securities laws and rules, according to the article.
The letters included recommendations to redefine “what is meant by a branch office and office of supervisory jurisdiction, allowing greater use of electronic signatures and expanding the number of licensing exams that can be taken online.”
FINRA reportedly made a temporary rule change to allow remote office inspection for last year and this year through the end of this year.
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For more information on The White Law Group, visit www.whitesecuritieslaw.com.Tags: FINRA 20-42, Finra Supervision, securities attorneys Last modified: February 17, 2021