Are you considering purchasing another broker-dealer?

It is a wise move to conduct compliance and operational due diligence before closing on the purchase. Many brokerage firms have not been through a FINRA examination since the new regulatory rule changes regarding mutual fund breakpoints, mutual fund share class issues, variable annuity suitability, reporting of U4 and U5 amendments, email storage systems, and the implementation and annual review of AML procedures. Suitability/reporting violations can often lead to fines, disciplinary action, and contingent liabilities that, if unaccounted for, can turn an attractive purchase into a financial and compliance nightmare.

1st BridgeHouse can either conduct a full scale, wide ranging due diligence patterned after a FINRA examination, or perform a limited due diligence based on specific concerns you may have. If the scope of the investigation includes compliance systems and procedures, this due diligence can also function as the target broker-dealer's test of its supervisory control procedures required under new Rule 3012.