1st BridgeHouse provides ongoing advice to a number of FINRA registered broker-dealers that have found themselves short-handed either from a manpower perspective or an expertise perspective. We call this ongoing service our Joint Administrative Office, or JAO. Regulations are becoming increasingly complex, making it difficult for the small to medium size firm to keep up. This situation often leads to poor regulatory exams, exposure on the supervisory front, and increased liability in the case of a customer compliant. A simple example that could negatively impact regulatory exams, supervision, and complaint liability is the new Supervisory Control Procedures. If a broker-dealer is continuing to allow a producing manager to supervise his/her own trades, the firm is unnecessarily exposing itself to increased risk.

Through its JAO service, 1st BridgeHouse can "bridge the gap" for firms that do not have the manpower or expertise to interpret, test, review, or fully implement new regulations and new procedures. This assistance may be on a temporary basis as the firm seeks to hire a replacement or expand its compliance capabilities, or it may be a long-term relationship where the added expertise of a second set of opinions becomes extremely valuable.

If the broker-dealer chooses, 1st BridgeHouse can also include certain required reviews, meetings, and tests as part of its ongoing services. As detailed elsewhere on this website, each broker-dealer must conduct a review of its policies and procedures and perform an annual AML test. Each broker-dealer must also conduct AML training on an annual basis, hold an Annual Compliance Meeting, and carry out branch office audits. The firm can outsource all, some, or any one of these compliance responsibilities to 1st BridgeHouse as part of its JAO service.