Comment Deadline Set for FINRA Proposal to Facilitate Home Offices

Comments on a FINRA-proposed rule change to "treat a private residence at which an associated person engages in specified supervisory activities as a non-branch location" are due by August 23, 2022. The notice was published in the Federal Register.

As previously covered, the proposed rule change would amend FINRA Rule 3110 ("Supervision") to adopt new supplementary Material .19 ("Residential Supervisory Location"). The supplementary material would "align FINRA's definition of an office of supervisory jurisdiction and the classification of a location that supervises activities at non-branch locations with the existing residential exclusions set forth in the branch office definition."

The proposed rule change would subject private residences acting as home offices to a number of restrictions, and they would be subject to periodic inspections on a Residential Supervisory Location possibly every three years rather than annually.