SR-FINRA-2023-012

The Financial Industry Regulatory Authority, FINRA, has published on its website a proposed rule amendment (SR-FINRA-2023-012) to FINRA Rule 3110 as regards broker-dealers‘ 2024 inspection requirements that was recently filed with the U.S. Securities and Exchange Commission (SEC).
Specifically, FINRA seeks (sought) to modify „Supplementary Material .17 (Temporary Relief to Allow Remote Inspections for Calendar Years 2020, 2021, 2022, and 2023)“ under FINRA Rule 3110 to provide member firms the option, subject to certain conditions, to complete remotely their calendar year 2024 inspection obligations under FINRA Rule 3110(c) (Internal Inspections) without an on-site visit to the office or location. FINRA Rule 3110(c) requires that each member must conduct an annual review of its businesses to detect and prevent violations of securities laws and FINRA rules. This includes reviewing activities in each office, examining customer accounts to prevent irregularities, and maintaining records of these reviews.
The proposed rule change was meanwhile published by the SEC in the Federal Register and approved by the regulator. Nevertheless, the SEC would appreciate any comments on the approved rule change up to October 24, 2023.