Tr?id=566623520170033&ev=PageView&noscript=1

Ä¢¹½´«Ã½

FINRA Alters Remote Inspection Proposal to Satisfy Critics

Posted on January 3rd, 2023 at 1:02 PM
FINRA Alters Remote Inspection Proposal to Satisfy Critics

From the Desk of Jim Eccleston at Ä¢¹½´«Ã½.

The Financial Industry Regulatory Authority (FINRA) has amended its proposal to permit financial advisory firms to conduct their internal inspections remotely beyond year-end 2023 to satisfy state regulators and investor advocates.

FINRA’s amendments would require advisory firms to consider additional risk factors when determining whether a location is eligible for remote inspections. For instance, FINRA specifically has asked firms to evaluate a location based on its trading volume, product complexity, and whether its clients are particularly vulnerable. Furthermore, the amendments would mandate financial advisory firms to “make more frequent use of unannounced, on-site inspections” for locations where “red flags” are present or are suspected.

FINRA’s amendments also propose prohibiting remote-inspections eligibility for advisory firms that have registered with FINRA within the past 12 months, as well as for firms that are required to adhere to more stringent compliance measures than the rest of the industry based on past misconduct. Finally, FINRA added a clause to its proposed remote inspection agenda that would allow it to determine that an advisory firm cannot conduct remote inspections of location “in the public interest and for the protection of investors.”

Ä¢¹½´«Ã½ LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

Tags: eccleston, eccleston law, advisors, law, finra

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

If the regulators are after you, and are trying to make a case against you, and you are going to contest their allegations against you, make sure you have the best securities industry defense lawyers, Ä¢¹½´«Ã½ Firm. My case was spun into a combination of penalties including fines, cash settlements, CE courses and suspension. They were the best I have seen in action. When all was said and done, they had done their magic, my situation was negotiated and settled with a simple "letter of caution" and a case closed without action. It is the most important legal business decision you will ever make, make it Ä¢¹½´«Ã½.

Rick R.

LATEST NEWS AND ARTICLES

1787157891 Law
August 19, 2026
Former UBS Financial Advisor Suspended and Fined Over Unauthorized Trading Allegations

The Financial Industry Regulatory Authority (FINRA) suspended a former UBS Ä¢¹½´«Ã½alth Management USA broker for three months and fined him $10,000 after finding that he executed hundreds of trades in two customers' accounts without the required written authorization.

1787156982 Law
August 19, 2026
FINRA Suspends Former Gradient Securities Advisor

The Financial Industry Regulatory Authority (FINRA) has suspended former Gradient Securities representative Mark J.

1787070589 Law
August 18, 2026
Senior Protection Case Study: Edward Jones and Senior Investor Safeguards

A recent incident involving Edward Jones illustrates how challenging it may be to employ safeguards for protecting older clients from financial exploitation.