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SEC Approves Eased Oversight Guidelines for Remote Advisors

Posted on January 5th, 2024 at 1:34 PM
SEC Approves Eased Oversight Guidelines for Remote Advisors

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

Advisors opting for home offices received a nod from the Securities and Exchange Commission (SEC) as it greenlit rules permitting remote inspections of advisors' offices. The new regulations also reduce the mandatory examination frequency for advisors' home offices from annual to triennial.

The rules, proposed by the Financial Industry Regulatory Authority (FINRA) in the Summer of 2022 following pandemic-induced shutdowns, received SEC approval after over a year of discussions and objections from investor advocates. Despite concerns, the SEC asserted that the approved rules align with its broader responsibilities of supervising against fraud and protecting investors. The SEC's recent endorsement affirms this will contribute toward a more flexible approach to supervising advisors' activities.

 

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

 

Tags: eccleston, eccleston law, sec

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