In December 2020, FINRA published Regulatory Notice 20-42, which launched a review of lessons learned during the pandemic, soliciting comment on a range of topics, including remote inspections. In response to that notice, FINRA has seen general support from broker-dealers for a permanent rule to allow firms to conduct their inspections remotely.
FINRA is now in talks with the SEC to allow firms to continue with remote inspections in 2022. Late last year, FINRA adopted temporary supplementary material under Rule 3110 to help firms meet their inspection obligations for calendar year 2020 and 2021. This rule will expire on Dec. 31, but FINRA is actively engaged in discussions with SEC staff to explore extending the duration of this relief into 2022.
If your firm would like more guidance on how to improve remote inspections, please give The Law Offices of Christopher H. Tovar, PLLC a call at (832) 370-3908.
