1 Analyses of this federal-register by attorneys

  1. SEC Approves FINRA Supervisory Control Rules Expanding Remote Work Options for Broker-Dealers

    King & SpaldingFebruary 9, 2024

    Release 34-98982 “Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Order Approving a Proposed Rule Change to Adopt Supplementary Material .18 (Remote Inspections Pilot Program) under FINRA Rule 3110 (Supervision)”, (November 17, 2023) (“Remote Inspection Adopting Release”), and see also SEC Release 34-98980, “Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing of Amendment No. 2 and Order Granting Accelerated Approval of a Proposed Rule Change, as Modified by Amendment Nos. 1 and 2, to Adopt Supplementary Material .19 (Residential Supervisory Location) under FINRA Rule 3110 (Supervision)”, November 17, 2023 (“Residential Supervisory Location Adopting Release”). The Remote Inspection Adopting Release was published in the Federal Register on November 24, 2023: see 88 Fed. Reg. 82464 (November 24, 2023). The Residential Supervisory Location Adopting Release was published in the Federal Register on that same day: see 88 Fed. Reg. 82447 (November 24, 2023).9The activities specifically enumerated as supervisory activities for purposes of the RSL designation are: “(D) final acceptance (approval) of new accounts on behalf of the member; (E) review and endorsement of customer orders; (F) final approval of retail communications for use by persons associated with the member, pursuant to Rule 2210(b)(1), except for an office that solely conducts final approval of research reports; or (G) responsibility for supervising the activities of persons associated with the member at one or more other branch offices of the member.” Also enumerated is the activity described at Rule 3110(f)(2)(B): “any location that is responsible for supervising the activities of persons associated with the member at one or more non-branch locations of the member […].” Notably absent from the definition of RSL are the activities described by Rule 3110(f)(2)(A) through (C): “(A) order execution or market making; (B) structuring of public offerings or private placements; (C