Series 6: 2.1.4. Internal Inspections And Compliance

2.1.4. Internal Inspections and Compliance

FINRA rules require that registered principals be designated by each firm to establish, maintain, and enforce a system of supervisory control policies and procedures. At least one of these registered principals must conduct annual internal inspections at every Office of Supervisory Jurisdiction and every branch office that supervises a non-branch office to ensure compliance with securities laws. An Office of Supervisory Jurisdiction (OSJ) is an office that requires special supervisory attention, either because FINRA deems that the activities conducted there have particular regulatory significance or because the member firm itself believes it prudent or necessary based on FINRA guidelines. A branch office is any location where one or more associated employees is in the business of soliciting o