MSRB Extends Period for Remote Office Inspections
Commentary by Steven Lofchie
The MSRB voted to amend MSRB Rule G-27 ("Supervision"), to allow dealer firms to conduct office inspections remotely. The extension runs until December 31, 2022. The relief was otherwise set to expire June 30, 2022.
The MSRB stated that when conducting remote inspections, a dealers should (i) amend its written supervisory procedures to provide for remote inspections, (ii) be confident that its remote office inspections are effective, and (iii) maintain the required records for all offices that had inspections conducted remotely and for any offices where the dealer determines a need for frequent monitoring.
Commentary
Notwithstanding that individuals and firms are returning to their offices (at least some days in a week), it is time for the regulators to start seriously considering how to apply their supervisory requirements to a work from home environment on a permanent basis. No doubt, there will be a meaningful number of individuals who will never return to going into the office every day.
MSRB/FINRA/SEC and the other regulators should use this period of provisional relief to think through, with the industry, how supervision looks over the long term.