In light of COVID-19, the Securities Industry and Financial Markets Association (SIFMA) and other lobbying groups are pressuring the Financial Industry Regulatory Authority (FINRA) from returning to on-site inspections – and it appears FINRA might be willing to re-evaluate its protocol.
In November 2020, FINRA passed temporary regulatory relief that allowed remote inspection of broker-dealers’ offices. Morgan Lewis partner Amy Natterson Kroll told Financial Advisor IQ that the relief officially ends on December 31, 2021. A date, she said, broker-dealers are “acutely aware” of.