FINRA Rule 3110.19

Outlines the conditions for the designation of a private residence where supervisory activities are conducted as a non-branch location in connection with the carrying out of those activities.

Rule Overview

Jurisdiction: United States

Regulator: FINRA

Topic: Supervision

Overview

Rules in This Collection

Notable

Further Reading

In order to qualify as an residential supervisory location (RSL) the private residence must fulfill the following conditions:

business is conducted there by one person or multiple individuals who are members of the same immediate family
the location is not held out to the public as an office
no meeting with customers or prospective customers take place there
sales activity taking place is compliant with FINRA Rule 3110(f)(2)(A)(ii) or (iii) – outlining some key requirements including around electronic communications, correspondence, communications, recordkeeping, WSPs, etc.
customer funds or securities are not handled there
the person working there is formally assigned to a branch office
the person’s correspondence and communication with the publi are supervised in accordance with FINRA Rule 3110 obligations
electronic communications are made using the firm’s systems
a recordkeeping system is in place to preserve the records and those records are not kept at the location
appropriate surviallance is in place

FINRA Rule 3110.19(b)

Member firm ineligibility criteria

FINRA Rule 3110.19(c)

Location ineligibility criteria

FINRA Rule 3110.19(d)

Obligation to provide list of RSLs to FINRA

FINRA Rule 3110.19(e)

Risk Assessment

Rules in This Collection

FINRA Rule 3110

FINRA Rule 3110.06

FINRA Rule 3110.19 This Rule

Notable

FINRA

Coming soon: FINRA’s residential supervisory location rule change

March 5, 2024

New non-branch location will be subject to more stringent conditions and safeguards to ensure adequate continuing investor protection.

Thomas Hyrkiel, Julie DiMauro6 min read

Supervision

SEC approves proposed rule change to FINRA Rule 3110

November 21, 2023

Move allows more formal remote inspections in recognition of changed work environment.

Julie DiMauro1 min read

Supervision

SIFMA survey results – key themes from compliance and legal professionals

April 11, 2024

SIFMA's recent conference event enabled it to survey compliance and legal professionals from across the financial services industry. Here are some of the results.

Julie DiMauro2 min read

FINRA

Coming soon: FINRA’s residential supervisory location rule change

Supervision

SEC approves proposed rule change to FINRA Rule 3110

Supervision

SIFMA survey results – key themes from compliance and legal professionals