FINRA Alerts Firms to "Functionality Enhancements" on Branch Office Registration Forms
Commentary by Glen Barrentine
FINRA notified firms that it implemented Uniform Branch Office Registration Form ("Form BR") functionality enhancements for initial submissions.
The enhancements allow firms "to de-select FINRA when establishing a new [emphasis in the original] location designated as an RSL [residential supervisory location] that needs to be registered or notice filed with a jurisdiction, the New York Stock Exchange (NYSE), or both, as a branch office." (See related coverage.)
In the alert, FINRA advised member firms "not to amend Form BR to account for the RSL designation" until related functionality enhancements are developed. FINRA instructed, firms "not to close/withdraw Form BR to account for the RSL designation in any jurisdiction or with any SRO that has branch office registration/notice filing requirements." FINRA said that for reasons unrelated to the RSL, Form BR can be amended in the usual manner and provided updated FAQs.
FINRA said it is working to amend Form U4 to include an "RSL Question," which will be the way member firms will comply with the reporting requirement under FINRA Rule 3110.19(d) ("Obligation to Provide List of RSLs to FINRA"). FINRA said that "until such functionality is available, member firms should maintain an internal list of all RSLs."
Commentary
The referenced enhancement to Form BR applies only to initial filings of Form BR related to a newly established RSL location. The enhancement allows the member firm, when designating a new RSL location, to de-select FINRA.
Future enhancements will allow firms to amend existing Form BRs to account for the RSL designation. FINRA also reminds firms that they should not close/withdraw a Form BR to account for the RSL designation in any jurisdiction or with any SRO that has branch office registration/notice filing requirements.
FINRA is also maintaining a chart that includes a list of jurisdictions that accept the RSL designation, though FINRA disclaims that the list is for "reference" purposes only and urges firms to contact the relevant jurisdictions directly to receive the most up-to-date information. This information can be found in the linked chart in the fourth column under "BD Fees and Settings."
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