New FINRA Home Office Rule Resource Goes Live

Advisors should focus on the Guidance tab, which includes newly published FAQs, said Francois Cooke, managing director at ACA Group.

“The FINRA FAQs around RSLs provide clarity on some of the key questions that the industry has been asking about,” Cooke told ThinkAdvisor Thursday in an email. “The guidance also includes an RSL Eligibility Requirements and Conditions Checklist, which is a good resource for firms to use when determining eligibility of RSLs and should be used for each assigned RSL.”

Cooke relayed that firms are hestitant to undertake the requirement to ”conduct and document a risk assessment, and provide a list of RSLs to FINRA on a periodic basis,” and provide FINRA “with a current list of them by the 15th day of the month following each calendar quarter in the manner and format (e.g., through an electronic process or such other process) as FINRA may prescribe.”

It’s “a lot of additional work,” Cooke said. ACA recommends “that firms discuss these considerations internally and with their advisory partners (e.g., law firms and consultants).”