Residential Supervisory Locations (RSLs)
Under Rule 3110.19, a “residential supervisory location” (or RSL) is generally defined as a private residence from which an associated person engages in supervisory functions, including those described in FINRA Rule 3110(f)(1)(D), (E), (F) and (G), and FINRA Rule 3110(f)(2)(B). An RSL is non-branch location, which means that a firm does not need to register it as a branch office under Article IV, Section 8 of the FINRA By-Laws. As a non-branch location, a firm is required to inspect an RSL on a regular periodic schedule in accordance with FINRA Rule 3110(c)(1)(C) and FINRA Rule 3110.13. Starting on June 1, 2024, a firm may start using the RSL designation, subject to the terms set forth under Rule 3110.19.
In general, to use the RSL designation, a firm and the associated person at each location must meet specified eligibility requirements and conditions. Among other requirements, a firm must conduct and document a risk assessment, and provide a list of RSLs to FINRA on a periodic basis. Rule 3110.19(d) requires a member firm that elects to designate any of its offices or locations as RSLs to provide FINRA with a current list of them by the 15th day of the month following each calendar quarter in the manner and format (e.g., through an electronic process or such other process) as FINRA may prescribe.
As member firms determine which offices or locations may be eligible for RSL designation, firms are reminded of their obligations to maintain updated Form U4 (Uniform Application for Securities Industry Registration or Transfer) information regarding the office of employment address for registered persons who temporarily relocated due to the pandemic and as applicable, to submit branch office applications on Form BR (Uniform Branch Office Registration Form) to register their branch offices. While Regulatory Notice 20-08 (Notice 20-08 Relief) temporarily suspended these obligations due to the pandemic, the Notice 20-08 Relief ends on May 31, 2024.
FINRA By-Laws
FINRA Rules
- FINRA Adopts FINRA Rule 3110.19 (Residential Supervisory Location) and FINRA Rule 3110.18 (Remote Inspections Pilot Program), and Announces End of Temporary Relief Related to Updates of Office Information on Forms U4 and BR01/23/2024
- SEC Approves New Supervision Rules03/19/2014
- FINRA and the SEC Issue Joint Guidance on Effective Policies and Procedures for Broker-Dealer Branch Inspections11/30/2011
- SEC approves amendments to NASD Rule 3010(g)(1) to Exempt Locations that Solely Conduct Final Approval of Research Reports12/19/2007
- Extension of Effective Date of NASD Uniform Branch Office Definition and Certain Form BR and Form U4 Filing Requirements from May 1, 2006 to July 3, 2006, Effective Date of Uniform Definition: NASD: July 3, 200603/21/2006
- SEC Approves Uniform Branch Office Definition and Related Interpretive Material10/06/2005
- NASD Provides Guidance On Supervisory Responsibilities06/01/1999
- NASD Reminds Members Of Supervisory And Inspection Obligations05/01/1998
- Guidelines For Compliance With Article III, Section 27 of the NASD Rules of Fair Practice Re: Supervisory Practices and Procedures04/01/1989
- SEC Approval of Amendments to NASD Rules of Fair Practice and Conforming Amendments to the By-Laws Re: Supervisory Practices and Definitions of Branch Office and Office of Supervisory Jurisdiction11/01/1988
End of Regulatory Notice 20-08 Relief | |
June 1, 2024 | Rule 3110.19 effective date The first day a firm may use the RSL designation. |
June 1, 2024 | Date on which firms previously relying on the Notice 20-08 Relief must comply with the timeframes specified in Article V, Section 2 or Article IV, Section 8 of the FINRA By-Laws |
July 1, 2024 | Date by which firms previously relying on the Notice 20-08 Relief must file supplementary amendments to Form U4 and BR with FINRA in accordance with Article V, Section 2 or Article IV, Section 8 of the FINRA By-Laws |
September 14, 2024 | Date on which FINRA expects to deploy the RSL Question, eliciting information to identify RSLs, on Form U4
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November 26, 2024 | Implementation date of the RSL Question on Form U4
This date is 30 days before the December 26, 2024 deadline to respond to the RSL Question in accordance with the timeframe specified in Article V, Section 2 of the FINRA By-Laws |
December 26, 2024 | Date by which firms that have identified a location as a non-registered private residence is or is not an RSL are required to answer Form U4’s RSL Question as either “Yes” or “No” |
- GuidanceFINRA alerts member firms that the New York Stock Exchange (NYSE) has filed a rule change for immediate effectiveness to harmonize NYSE Rule 3110 (Supervision) with FINRA Rule 3110 (Supervision) to permit eligible NYSE member organizations to participate in FINRA’s Remote Inspections Pilot Program and to adopt FINRA’s Residential Supervisory Location (RSL) classification.October 25, 2024
- GuidanceFINRA has implemented Form BR (Uniform Branch Office Registration Form) functionality enhancements for amendments to Form BR submissions for existing locations that will allow firms to account for the RSL designation by de-selecting a location’s registration for FINRA and the jurisdiction that accepts the RSL designation, while continuing to pre-select the location’s registration or notice filing in a jurisdiction or the New York Stock Exchange (NYSE), or both, that has not accepted the RSL designation.October 07, 2024
- GuidanceAn overview of the scenarios described in FAQs 39-44, covering Form BR filings—initial and amendments—for FINRA and a jurisdiction, and the NYSE, as applicable.October 07, 2024
- GuidanceA new question has been added to the Uniform Application for Securities Industry Registration or Transfer (Form U4) to identify Residential Supervisory Locations (RSLs) for purposes of complying with FINRA Rule 3110.19(d), as amended (RSL Question). Firms that have identified a location as a non-registered private residence are required to answer the RSL Question as either “Yes” or “No” by December 26, 2024. The previously announced October 15, 2024 date in Regulatory Notice 24-02 has been replaced by the December 26, 2024 deadline. Further information on Form U4’s new RSL Question and the related deadline is available in File No. SR-FINRA-2024-015 and in the Frequently Asked Questions about Residential Supervisory Locations (RSLs).September 16, 2024
- GuidanceFINRA has implemented Form BR (Uniform Branch Office Registration Form) functionality enhancements for initial Form BR submissions that allow firms to de-select FINRA when establishing a new location designated as an RSL that needs to be registered or notice filed with a jurisdiction, the New York Stock Exchange (NYSE), or both, as a branch office. Further information on these functionality enhancements and how firms should complete an initial Form BR is available in the Frequently Asked Questions about Residential Supervisory Locations (RSLs).July 18, 2024
- GuidanceFINRA understands that certain jurisdictions and SROs that require a branch office to be either “registered” or “notice filed,” using Form BR (Uniform Branch Office Registration Form) may not currently be able to recognize FINRA Rule 3110.19 (Residential Supervisory Location (“RSL”)).June 18, 2024
- FAQFrequently Asked Questions (FAQs) about RSL designations, including, among others, reporting and compliance, conditions and recordkeeping.
- Guidance
- Guidance
In general, a member firm’s office or location is either registered as a branch office, if it meets the definitions contained in Rule 3110(f), or exempt from branch office registration (i.e., an unregistered office or non-branch location), if it fits within an express exclusion from the branch office definition listed in Rule 3110(f)(2)(A)(i)–(vii) or is designated as a residential supervisory location (or RSL) under the terms of Rule 3110.19.