FINRA Reviews Supervisory Practices over Remote Working Environments
Commentary by Steven Lofchie
FINRA reviewed operational and supervisory practices that firms have adopted in response to the challenges of a remote work environment.
In its Regulatory Notice, FINRA shared operational practices concerning cybersecurity and communications. FINRA also described practices concerning remote supervision, trading supervision, supervision of customer communications and branch office inspection of remote work.
Commentary
Firms would be well advised to review FINRA's "suggestions" as to the conduct of supervisory procedures during the current work-from-home period. While one would expect the regulators to grant firms some leeway on the details, the regulators have not granted firms any general exemption from their supervisory obligations. (See also FINRA Tells Firms to Document Reliance on COVID-19 Relief.)