Comprehensive Regulatory Compliance Review (Testing)

RIA Testing

Registered Investment Advisors (RIAs) must adhere to SEC Rule 206(4)-7. The rule requires an annual review of compliance policies and procedures. Our consultants conduct comprehensive compliance audits and risk assessments.

They will identify any gaps and assess the effectiveness of your compliance program. Our consultants have managed regulatory exams. We provide valuable insights to strengthen your compliance framework.

Effective Branch Exams

Branch exams are a critical component of every Broker-Dealer’s compliance framework. These examinations ensure that branch offices are operating within regulatory guidelines and firm policies.

Oyster provides comprehensive support for branch exams, including on-site and remote examinations, outsourcing options, and program development assistance. Our experienced team collaborates with firms to improve their control environment, identify compliance issues, and enhance overall compliance. By conducting thorough branch exams, we help broker-dealers maintain regulatory compliance and mitigate potential risks.

Regulatory Background

Several key rules govern supervisory testing and ensure adherence to standards:

• FINRA Rules 3110, 3120, and 3130: These rules mandate that firms maintain a robust system to supervise the activities of associated persons. Additionally, they require supervisory control policies and procedures (SCPs) to test and verify a firm’s supervisory procedures. Firms must also identify principal(s) to serve as a Chief Compliance Officer (CCO) to FINRA. Annually, the firm’s CEO(s) must certify that these measures are in place, designed to achieve compliance with applicable securities laws, regulations, and FINRA rules.
• FINRA Rule 3310: This rule necessitates that firms develop and implement a written Anti-Money Laundering (AML) compliance program. Key components include designating an AML Compliance Officer to FINRA, providing ongoing employee training, and conducting independent testing. Notably, there are no exemptions or exceptions to the requirement of having an AML program.
• The Bank Secrecy Act: Under this act, firms must establish a Customer Identification Program (CIP) and implement procedures for identifying and reporting suspicious activity.
• SEC Rule 206(4)-7: Registered Investment Advisors (RIAs) are subject to this rule, which mandates an annual review of compliance policies and procedures to assess their effectiveness.

The Oyster Difference

Sometimes, off-the-shelf compliance solutions just don’t fit. You need compliance management systems that work with your business processes. At Oyster, we tailor our services to match your firm’s goals, structure, and risk tolerance.

Our veteran experts are well acquainted with compliance regulations and adept at maintaining compliance standards. Oyster’s compliance testing, assessments, and annual reviews help you reframe your compliance policies and procedures to reduce risk. Rest assured that your compliance program is in capable hands, while you focus on your core business objectives.