On July 24, FINRA announced it launched a voluntary Remote Inspections Pilot Program on July 1. FINRA described the program as a significant step in modernizing regulatory oversight in the financial industry. The pilot program will allow eligible firms to fulfill their inspection obligations remotely, subject to specific requirements such as conducting and documenting an office or location-specific risk assessment, and producing written supervisory procedures for conducting remote inspections and reporting inspection data to FINRA. A total of 741 member firms opted into the program’s initial phase.

FINRA designed the pilot to address the growing trend of remote work and the increased use of technology in the financial industry. Participation was notably high among large firms, with 60 percent of those with 500 or more registered representatives opting in. By collecting data throughout the three-year program, FINRA will aim to evaluate the effectiveness of remote inspections and determine whether they can be integrated seamlessly into the existing supervisory framework. This could lead to a more efficient and adaptable regulatory system that better aligns with modern business practices.

The first data submission from participants is due mid-October. The deadline to opt in for the second year of the pilot is December 27. Year two of the pilot will run the entire 2025 calendar year.