In a new package of rules filed by FINRA with the SEC, gone is the previously proposed requirement that broker dealers supervise non-securities-related businesses — apparently as a result of industry protests. FINRA was quick to point out that registered reps will still be held to high standards under the current Rule 2010.
In addition, the proposed rules would tighten up supervision of far flung offices by independent broker dealers. Though the supervisor does not have to be in the same location, if the OSJ is far away, the broker dealer “must be able to demonstrate 'effective supervision and control' of the activities of the on-site principal,” according to FINRA. Principals who oversee more than one OSJ may be in trouble under the new rules, especially if the second one is far away.
