Finra will allow brokerages to conduct online supervision of branch offices into next year while the SEC mulls a Finra proposal for a remote-inspection pilot program.
On Monday, the Financial Industry Regulatory Authority Inc. filed a proposal with the Securities and Exchange Commission to continue remote inspections through the end of 2023 or until the SEC approves the pilot idea. The temporary rule allowing remote inspections was set to expire in December.
“The proposed extension … would alleviate the ongoing operational challenges resulting from the COVID-19 pandemic that many member firms may continue to face in planning for and timely conducting the on-site inspection component of [the supervision rule] at locations requiring inspection in calendar year 2023,” the Finra proposal states.
The proposal was filed with immediate effectiveness, which means that it will go into effect on Jan. 1 unless the SEC objects. The SEC must approve Finra rule proposals.
Earlier this year, Finra filed with the SEC a proposal to establish a three-year remote-inspections pilot program. It’s unclear when the SEC will rule on the pilot measure, which prompted Finra on Monday to extend temporary relief from in-person inspections.
“Given the potential length of that review period, and the pilot program’s significant planning requirements and varying limitations applicable to specific firms and office locations, Finra believes that firms that intend to participate in the pilot program, if approved, will need a significant number of months to prepare appropriately for the pilot program,” the Finra proposal states. “Moreover, further Finra guidance may be needed to guide implementation in various circumstances.”
The pilot program effectively would be a step toward making permanent the online supervision that Finra has allowed since November 2020 in response to the pandemic. Finra eased in-person office inspection requirements in light of social distancing during the pandemic that caused most brokerages to switch to remote operations.
AdvisorHub first reported the remote-inspection extension.
Chicago-based Mesirow Fiduciary Solutions adds flexPATH's plan-level outsourced fiduciary book, boosting its retirement market reach to $164 billion.
Also, Raymond James's employee advisor channel adds breakaways from Wells Fargo and Stifel, while UBS welcomes an ex-Morgan Stanley duo in Indiana.
It promised guaranteed principal and 10% monthly returns. The SEC says it invested nothing.
Ten years after entering the fee-based annuity market, MassMutual Ascend says nearly half its lifetime sales came in the past two years alone – but barriers remain among fee-only advisors.
Amplify, WealthReach, Zeplyn and Zocks have unveiled partnerships aimed at automating portfolio management, content creation, account opening, and client communication.
Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains
Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income
