Services
Philosophy
About
Links
Contact
Blog
Home

Services

Imhoff Consulting Project would like to help you to understand FINRA and SEC rules and regulations. We offer certain services designed to help you meet your compliance obligations, such as:

annual independent testing and procedures/updates

updates and custom language for WSP, C/E and BCP manuals

preparation for nasd audits and drafting response letters

on-site compliance examination and written report

custom research and writing in-depth review of books and records compliance

amendments, filings, notifications

FINRA Rule 3310 requires that member firms adopt and implement anti-money laundering programs; Sections 352 and 326 of the The USA PATRIOT Act require firms to have written AML and customer identification programs. Testing by an independent party is required annually for almost all firms on a calendar basis. Of note: SEC and FinCEN have signed an information sharing agreement. SEC can report results from routine exams to FinCEN, which will follow up by investigating perceived non-compliance with Federal AML requirements.

FINRA Rule 3010(b) requires that member firms establish, maintain and enforce written supervisory procedures. Rule 4370 requires firms to establish business continuity plans. Pursuant to Rule 1120, member firms are required to develop and implement a program for the continuing education of their covered registered persons.

All FINRA member firms are examined periodically by dedicated District examiners. Firms are on either a 1-year, 2-year or 4-year cycle, depending on their net capital requirements and other factors. Exam cycles are not set in stone: FINRA may change them without warning. Recent exams have been characterized as lengthier and more comprehensive than previous exams, given the large number of regulatory changes within the past few years. Solid preparation is a key to success.

Under Rule 3010(c), branch offices of member firms must be inspected annually if they are OSJ's or Supervisory Branches; and no less frequently than every 3 years for Non-Supervisory Branches. Non-branches (unregistered offices such as those in a personal residence) must also be subject to periodic inspection. Written inspection reports are required and certain items must be included in the inspection, such as customer fund transfers and address changes.

Sometimes you need someone to assist you in figuring out new rules, such as the Supervisory Control Rules--3012 and 3130. These Rules present compliance staff with added work and responsibility. While these required functions can't be outsourced, firms may get assistance in performing or documenting the required tasks.

SEC Rules 17a-3 and 17a-4 require broker-dealers to make and maintain certain records; FINRA enforces this requirement and imposes its own recordkeeping requirements under various Rules. Many firms find it useful to have a third party assess the state of their recordkeeping as a means of assuring compliance. This 'mock audit' process usually leads to improvement and enlightenment on misunderstood issues.

FINRA requires firms to make filings such as U4, U5 and BD amendments electronically via the WebCRD system. Regulatory filings such as those reporting civil, criminal or regulatory investigations are also now filed electronically. Early warning reporting required under SEC Rule 17a-11 and equity withdrawals, advances and loans requiring pre- or post-notification under Rule 15c3-1 (e)(1) must also be filed electronically under Rule 3170. Certain other notifcations are also required online, such as 3012 'limited size and resources exception' filings and notification of the use of electronic storage media (ESM).