FINRA’s Supervision Rule: Notable Changes

FINRA-new-yorkOn December 23, 2013, the SEC issued an order adopting proposed changes to FINRA’s supervision rule. On October 28, FSI filed a comment letter supporting FINRA’s proposed changes to the supervision rule.

While FINRA continues to express significant concerns with one-person OSJ offices, it chose to remove the requirement that a “senior principal” conduct on-site supervision on a regular periodic schedule. In addition, FINRA narrowed the definition of “covered account” to clarify firms’ insider trading transaction review obligations. Finally, FINRA made several other changes designed to provide helpful clarifications to the requirements of the final supervision rule.

These changes are important steps in the development of this rule, because there is a clear effort to increase supervision and compliance, without making the rules unnecessarily onerous on advisors. We commend FINRA for listening to our members’ feedback as this rule continues to undergo revisions.

FINRA recently announced during a webinar that the compliance date for the changes to the supervision rule will be December of 2014, so stay tuned for more!


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s