The work from home issue has been rumbling on for many years but was paused to a large degree during the Covid pandemic. But some brokerage firms are mandating return to the office, with some citing regulatory requirements.
However, while allowing registered persons to work remotely or hybrid from their home office or other location outside of the firm’s offices can some with additional responsibilities, Finra has been keen to refute statements from some firms that this results from “stringent” new rules, calling the claims “incorrect.”
The regulator says that “a location from which an associated person regularly conducts securities business on behalf of a member firm, including a home office, has always been subject to possible disclosure, registration and inspection under Finra rules and applicable rules of other regulators.”
However, it states that although during the pandemic firms were given relief from the rules as a temporary measure, firms were informed that this would end on May 30, 2024.
The new Residential Supervisory Location (RSL) Rule and Remote Inspections Pilot Program Rule are “intended to provide member firms greater flexibility — not less — to allow eligible registered persons to work from home, following the expiration of temporary COVID-19 relief from existing requirements,” Finra said.
While they are new rules, Finra says their implementation follows more than three years of its rulemaking process which included “substantial outreach” with firms and other stakeholders prior to approval by the SEC.
The regulator has provided guidance including webinars and documents explaining the rules and how they apply to brokerage firms, including:
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