In July, the Financial Industry Regulatory Authority Inc. filed a proposal with the Securities and Exchange Commission that would allow a broker working remotely to supervise other brokers without the broker’s home being designated as a branch office.
The so-called residential supervisory location would be subject to examination by the parent brokerage once every three years instead of the annual inspection that must be performed at an office of supervisory jurisdiction.
The SEC, which must approve Finra rules, put the proposal out for an initial comment period over the summer. The agency heard from firms and industry groups that supported the measure. But it also received letters from the North American Securities Administrators Association, which represents state regulators, and the Public Investors Advocate Bar Association, which both warned that remote supervision would undermine investor protection.
‘Enforcement 40’ for 2020
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