FINRA Seeks to Ease Worries on New Home Office Rules

Industry Weighs In

Carlo di Florio, Global Advisory Leader at ACA Group, said in an email that FINRA’s statement is likely in response to “comments made by firm CCOs” at FINRA’s annual conference, held May 14-16 in Washington, “about some of the operational challenges firms are facing with the new rules, including statements that some are bringing folks back to the office.”

With its statement, “FINRA is simply clarifying that the new framework they are introducing is designed to create more flexibility for hybrid and work from home, not less,” di Florio said.

Francois Cooke, managing director at ACA, added that “our team has not received any feedback that the new FINRA rules had been interpreted as requiring firms to bring the workforce back to the office full time.”

Ben Marzouk, partner at Eversheds Sutherland in Washington, stated in another email that the new remote office rules “do have several conditions that broker-dealers need to meet in order to avail themselves of the new ‘remote’ office framework.”

That said, “FINRA is correct that the rules are ultimately intended to provide firms greater flexibility to allow registered persons to work from home — the rules don’t force anyone back to the office 5-days/week, and aren’t intended to have that effect either,” Marzouk relayed.

“All FINRA is saying is that if you’re going to continue to allow your persons to work remotely … you’ll need to supervise and inspect those offices like you would any other office,” Marzouk said.