MSRB Proposes Further Extension of Remote Office Inspection Relief
The MSRB proposed to (i) further extend remote office inspection relief and (ii) remove references to expired pandemic-related relief for brokers-dealers and municipal securities dealers.
As previously covered, pandemic-issued relief allowed dealers to conduct remote inspections of municipal offices of supervisory jurisdiction, branch offices or non-branch locations under MSRB Rule G-27 ("Supervision") Supplementary Material .01. The proposal would extend this relief - originally set to expire on June 30, 2023 - through June 30, 2024. Under the proposal, dealers must make and maintain the required records for all offices or locations remotely inspected, including any offices or locations for which the Dealer imposed additional supervisory procedures or more frequent monitoring. The proposal also removes outdated references to relief provided by the MSRB during the pandemic under MSRB Rule G-16 ("Periodic Compliance Examination").
The MSRB said that many firms have implemented a hybrid work environment due to the pandemic, and this additional 12-month extension will allow dealers to continue to assess their current and future state of work and evolve their supervisory practices to better support an integrated hybrid work environment.
The proposed rule change was filed for immediate effectiveness on April 27, 2023, and becomes operative on July 1, 2023.
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