Annual Compliance Review
What is a Annual Compliance Review
An annual Compliance Review is a compliance review that all firms must hold at least once per year. All broker dealers are required to inspect all of its agents at least once per year to address the firm’s business practices and compliance procedures.
SecuritiesCE Explains Annual Compliance Review
At least once per year the member must conduct a compliance review of each OSJ, supervising branch office, and each registered representative. The individuals who conduct the review are generally prohibited from being assigned to the office being inspected. The person inspecting the office should not directly or indirectly report to or be supervised by anyone at the office being inspected. Persons assigned exclusively to the firm’s compliance department and supervised by the compliance department are generally excluded from this rule. Non supervising branch offices should be directly reviewed every three years. When the member reviews the OSJ, The member is automatically inspecting the activities of the branch offices under the jurisdiction of the OSJ. Each member must designate a principal to test the firm’s supervisory and compliance controls. This principal must file a report with senior management detailing the results of these tests. Controls must be in place to provide daily supervision of any producing managers. Be sure you are ready to pass your exam with our greenlight money back pass guarantee.
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The Securities Institute of America, Inc.