Broker Dealer - Branch Office Programs and Audits

SCA’s Branch Audit Program is a consultant-based program that provides branch compliance supervisory services to assist firms’ home offices develop and implement a branch supervisory system that should include:

• Clear and effective supervisory structure;
• Training;
• Evidence of supervisory review;
• Follow-up of exceptions ("red flags"); and
• Monitoring effectiveness.
  

SCA also helps firms modify their branch supervisory structure to meet the requirements of Rule 3010(c), including answers to the following questions:

• Who may now conduct office inspections?
• Can we use the limited size and resources exception?
• How do we determine which branch managers are subject to the heightened supervision requirement?
  

SCA's branch audits include:

• Interviews with branch personnel;
• Review of books and records;
• Review of compliance with industry rules and regulations;
• Testing and verification of the firms' supervisory and compliance policies and procedures;
  
• Report findings and recommendations and addressing all issues included in
  Rule 3010(c); and
• Follow-up audits for offices as necessary.