Series 14: 5.1.5.2. Internal Inspections

5.1.5.2. Internal Inspections

An associated person must conduct an annual internal inspection at every OSJ and every branch office that supervises a non-branch office to ensure compliance with securities laws. Other branch offices must be inspected every three years. Inspections must include a review of customer account records to detect irregularities or abuses. The associated person must also test and verify the member’s policies and procedures with regard to:

•Safeguarding customer funds and securities

•Maintaining books and records

•Supervision of supervisory personnel

•Transmittal of funds or securities from customers to third-party acc