Series 52: 8.3.2. Supervisory System

8.3.2.  Supervisory System

A supervisory system is a structure that defines who will carry out a firm’s oversight responsibilities and how the oversight will be accomplished. As defined by MSRB Rule G-27, a supervisory system must:

• • Define which member offices are designated OMSJs and how they are to be managed
• • Establish a managerial chain of command and attest to the qualifications of the managers it hires
• • Establish and keep current written supervisory procedures that instruct managers how to carry out their responsibilities
• • Conduct an annual compliance meeting with each of its principals and representatives
• • Assign each registered person to an appropriately registered representative or principal who shall be responsible for supervising that person’s municipal securities activities

Each Office of Municipal Supervisory Jurisdiction is required to designate at least one principal to be responsible for the supervision of the activities of the registered representatives and other principals in its own office and also in any branch office under its jurisdiction. Among the principal’s supervisory responsibilities are:

• • Enforcement of the firm’s written supervisory procedures
• • Periodic review of customer acco