The auditing of Branch Offices and Offices of Supervisory Jurisdictions (OSJs) within your system has always been an important line of defense in your system of supervisory controls. With the advent of Rules 3010, 3012, and 3013, conducting Branch and OSJ audits has taken on increased significance. Many firms are turning to independent third parties to conduct examinations of their Branch Offices and OSJs since annual audits are required in accordance with Rule 3013 and the firm’s CEO must certify that the firm’s systems of compliance and supervision are adequate.

Having an independent and qualified third party conduct compliance and supervisory examinations is a proactive step in reviewing your supervisory controls. An independent third party examination is usually looked upon favorably by regulators because of the truly independent nature of the examination.

Due to our work with broker-dealers from coast to coast, 1st BridgeHouse is often able to expose our clients to best practices conducted at other similar firms. This service is particularly helpful for those branches that have producing managers and/or firms whose compliance department is stretched to the maximum.