FINRA has hosted a teleconference for small firms, answering questions sent to them by industry members. Among the panelists were Chip Jones, Bob Colby, and Robert Cook, Below is a list of the questions and answers as I understood them to be. A recording of the call will be available on the FINRA website
Q. Will the SEC grant extension of RegBI due to the outbreak?
A. FINRA has made the SEC aware of requests by dealers to delay, and has been told that the SEC is “considering” the option.
Q. Should firms be afraid to contact their Risk Analyst to ask questions, in light of possibly throwing up a red flag?
A. Firms should have no fear of contacting FINRA, there will be no penalties. FINRA needs to know what’s going on.
Q. Cities and states are locking down. Can FINRA advocate that Dealers are essential businesses?
A. FINRA believes Dealers are essential and will make that point to authorities.
Q. How should Dealers handle offices that might become quarantined due to the virus, and issues such as checks, mail, etc. ?
A. No real answer to this other than that firms should devise supervisory procedures to handle these items in a best efforts way. Firms will be on a case-by-case basis.
Q. Are firms required to contact FINRA in the event of an office closure?
A. No, but best practice should be that firms contact their FINRA contact person know of such events.
Q. Are persons working remotely required to be registered at a new “branch office”?
A. No, refer to Notice 20-08, and this question will be answered as part of an FAQ that will be placed on FINRA’s web site in order to make the requirements clearer.
Q. Will extensions be made for persons currently needing to be fingerprinted?
A. FINRA hopes that the SEC will allow for extensions.
Q. Will there be extensions for form filing, such as Focus reports?
A. Approach the firm’s FINRA coordinator and discuss. FINRA expects to have a blanket extension for certain classes of firms, dependent upon size and risk.
Q. Will there be an extension of routine firm exams?
A. Routine exams most likely will be delayed until after the outbreak is controlled; however, firms exhibiting risk/obvious potential harm will be examined.
Q. Will there be relief from late fees?
A. Late fees will most likely be waived if properly documented and explained. Fees may be reversed if paid; there will be no time limit on the ability to reverse fees.
Q. What about pending tests and qualification tests?
A. With Prometric closed, enrollments will be open longer.
Q. Will original signatures on U-4 forms be allowed electronically?
A. Signatures will eventually need to be made but may be electronic during the outbreak.
Q. CAT Reporting- will this be extended?
A. Currently extended to 5.20.20, and hoping to have equity trades extended to 6.22.20 and options to 7.20.20, with changes possible. Letters regarding these changes are on FINRA web site.
Q. Will FINRA grant extensions regarding Rule 8210 (information provided during investigations)?
A. FINRA will be reasonable in the expectation of such information. Reach out to FINRA, there will be no repercussions.
Q. Will new arbitration claims be served?
A. Yes, but hearings are pushed out to later dates.
Q. What is the status of Member Application Program (MAP)?
A. Open for business, by telephone or teleconference; extensions will be granted.
Q. How should Dealers handle the inspection of their branch offices?
A. Firms should keep notes of what procedures are put in place to reasonably handle supervision during these times, the factors involved and actions taken.
Q. Will the 2020 National Conference be held?
A. Decision will be made next week.