FINRA Debuts Remote Inspections Resource for Advisors, Firms

Noll relayed that FINRA heard firms’ concerns, but “the SEC is not a huge fan of remote exams,” he said. ”We’ve had to work really hard as a regulator, often behind the scenes … trying to effect this change.”

A FINRA spokesperson told ThinkAdvisor that while the regulator does “not yet have any numbers on firms enrolled in the Remote Inspections Pilot Program,” the “Key Dates” section of the new Key Topics page has additional information on when firms may elect to participate.

The web page explains that firms that participate in the Pilot Program must conduct and document a risk assessment for that office or location.

Risk factors include:

• The volume and nature of customer complaints;
• The volume and nature of outside business activities, particularly investment-related;
• The volume and complexity of products offered;
• The nature of the customer base, including vulnerable adult investors;
• Whether associated persons are subject to heightened supervision;
• Failures by associated persons to comply with the member’s written supervisory procedures; and
• Any recordkeeping violations.

FINRA also released recently a new key topics page for its new rules treating home offices as ”residential supervisory locations.”