View Whole SectionText only Print Print Manager Link
Previous Next
  Versions
(2 versions)
 
Jul 3 2006 - Nov 30 2014Dec 1 2014 onwards

IM-3010-1. Standards for Reasonable Review

This rule is no longer applicable. NASD IM-3010 has been superseded by FINRA Rule 3110. Please consult the appropriate FINRA Rule.

In fulfilling its obligations pursuant to Rule 3010(c), each member must conduct a review, at least annually, of the businesses in which it engages, which review must be reasonably designed to assist in detecting and preventing violations of and achieving compliance with applicable securities laws and regulations and with NASD Rules. Each member shall establish and maintain supervisory procedures that must take into consideration, among other things, the firm's size, organizational structure, scope of business activities, number and location of offices, the nature and complexity of products and services offered, the volume of business done, the number of associated persons assigned to a location, whether a location has a principal on-site, whether the office is a non-branch location, the disciplinary history of registered representatives or associated persons, etc. The procedures established and the reviews conducted must provide that the quality of supervision at remote offices is sufficient to assure compliance with applicable securities laws and regulations and with NASD Rules. With respect to a non-branch location where a registered representative engages in securities activities, a member must be especially diligent in establishing procedures and conducting reasonable reviews. Based on the factors outlined above, members may need to impose reasonably designed supervisory procedures for certain locations and/or may need to provide for more frequent reviews of certain locations.
Amended by SR-NASD-2006-037 eff. July 3, 2006
Adopted by SR-NASD-2003-104 eff. May 1, 2006.

Selected Notice: 05-67.

Previous Next