Remote Inspections
SIFMA supports allowing broker-dealers to perform remote inspections of branch and office locations as part of their supervisory programs. The securities industry has evolved dramatically since current inspection rules were implemented, and it is time for regulatory frameworks to reflect that evolution.
Today’s securities industry operates in a digitally connected, highly regulated environment, with established systems for supervision, compliance, and customer protection. Yet many existing inspection requirements are based on decades-old assumptions about in-person operations and paper-based processes.
SIFMA believes regulators should work with the industry to update supervisory rules to reflect modern technology, risk management practices, and workplace realities.
Key Focus Areas
Enabling Risk-Based Remote Inspections
Remote inspections have proven to be a safe and effective supervisory tool—especially for lower-risk locations. They allow firms to:
- Focus compliance resources on higher-risk offices;
- Leverage widely available, cost-effective technology; and
- Maintain robust oversight without unnecessary travel or disruption.
During the pandemic, firms were required to adopt remote inspections and demonstrated that they could do so effectively while maintaining high compliance standards.
Supporting Regulatory Modernization
SIFMA supports the voluntary, three-year FINRA remote inspections pilot program as a step toward permanent modernization.
We encourage regulators to review and update related definitions and requirements, including:
- Branch office and Office of Supervisory Jurisdiction (OSJ) definitions;
- Inspection frequency for non–customer-facing locations; and
- Broader supervisory frameworks that reflect current technologies and workflows.
Enhancing Workforce Flexibility and Recruitment
Permitting remote inspections also supports workplace flexibility, helping firms attract and retain qualified supervisory professionals while maintaining strong compliance oversight.
The Bottom Line
Remote inspections represent a proven, technology-enabled approach to effective supervision. SIFMA urges regulators to make these capabilities permanent—ensuring rules evolve alongside innovation, strengthen compliance programs, and support the continued resilience of U.S. capital markets.
