Regulatory Wrap Episode 8: Exploring FINRA’s Proposed Rule 3110c Amendment

In Regulatory Wrap for the week to October 6, we deliberate regulators' proposal to modernize processes by making updates to Rule 3110c, which affects remote inspections.

06 October 2023 2 mins read
by Kathryn Fallah

In Regulatory Wrap for the week to October 6, 2023:

In this Regulatory Wrap, we unpack the Financial Industry Regulatory Authority’s (FINRA) proposal to alter Rule 3110c to extend the current remote inspection timeline for Office of Supervisory Jurisdiction (OSJ) locations and even make it a permanent process moving forward.

Highlights:

1. FINRA proposed to extend remote inspection timelines for OSJ branch offices until June 2024 as part of Rule 3110c amendments

2. FINRA is also working alongside the Securities and Exchange Commission (SEC) and state securities regulators to make the Remote Inspections Pilot Program Proposal permanent

3. If Rule 3110c is permanently altered, broker-dealers (BD) will no longer have to participate in on-site visits

4. This amendment is highly anticipated by BDs, who will save resources and time if on-site OSJ inspections are ceased

5. Either way, BDs now have more time to prepare for a return to on-site visits and should expect to hear more about the pilot’s success in 2024

This Regulatory Wrap is brought to you by Global Relay’s Head of Content, Jennie Clarke.

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