ThinkAdvisor (December 2, 2022) - The Public Investors Advocate Bar Association says the Financial Industry Regulatory Authority’s plan to allow a home office to be considered a non-branch “residential supervisory location” under certain conditions is “fundamentally flawed” and “leaves considerable opportunity for advisors working from home to skirt the rules.”
FINRA filed with the Securities and Exchange Commission in July its proposed changes to FINRA Rule 3110 to allow a home office to be considered a non-branch “residential supervisory location” under certain conditions.
The proposed amendment “would allow a home office to be considered residential supervisory location and then create rules and procedures for the supervision of same,” PIABA states.
The proposed rule was initially published for comment on Aug. 2.
PIABA submitted its comment on Aug. 23, urging the SEC to reject the rule proposal.
FINRA then consented to an extension of time through Oct. 31, “for the Commission to approve the rule, disapprove it, or institute proceedings to determine whether to approve or disapprove the proposal,” PIABA explained.