Compliance officers are grappling with the expiration of FINRA's pandemic-era waiver on in-person inspections for branch offices, which ends on May 31. Starting June 1, FINRA's new rule for residential supervisory locations will take effect, easing some requirements but adding new complexities.

According to AdvisorHub, the rule, approved by the SEC in November, reduces the frequency of inspections for home offices to once every three years instead of annually. However, it imposes numerous eligibility criteria and additional recordkeeping requirements.

Before the pandemic, advisors commonly worked from home, but the new rule now designates home offices as official supervisory locations. FINRA has issued two FAQs to assist firms: one on residential supervisory locations and another on remote inspections of branch offices, which will come into effect on July 1 after the temporary pandemic-era relief ends.

Financial Advisor Transitions consults advisors nationwide to explore employment transition options and to preserve and protect their practice in any transition that they make.