Broker-Dealer Rule 3120/3130 Services

Robust supervisory controls are an essential component of risk mitigation for your firm

Ensuring your firm’s compliance program is current with evolving regulatory requirements is an important factor when it comes to protecting your business and reputation.

Oyster consultants have the expertise to create a testing program customized to your firm and its lines of business. Our testing program and gap analysis will meet the requirements of FINRA Rule 3120 for Registered Broker-Dealers.

To ensure compliance with FINRA rule 3120, Oyster will review and test your supervisory controls, procedures and document the review while also recommending ways to enhance your firm’s control environment. If you are a dual-registered firm, we can also perform your Investment Advisor Annual Review, required under SEC Rule 206(4)-7. Our experts will ensure your program is compliant, reflects your firm’s capabilities, leverages technology and has effective, streamlined processes. 

The Oyster Difference

Our experts have years of industry experience and can ask thoughtful questions to quickly assess what areas of your firm need the most attention and review. Oyster can help your firm integrate industry best practices with an eye on maintaining a reasonable system of compliance. 

Regulatory Background

Under FINRA Rule 3120, broker-dealers are required to have in place a system of policies and procedures that annually test and verify firm supervisory controls procedures.  Firms must also create or amend Written Supervisory Procedures identified as necessary by this testing. 

The designated Principal or Principals must submit to senior management, no less than annually, a report detailing each FINRA member’s system of supervisory controls, the summary of the test results and significant identified exceptions and any additional or amended supervisory procedures created in response to the test results. 

Our Process

Step 01

Discover

We listen to your goals and priorities. We create transformative change by inviting a two-way discussion.

Step 02

Plan

We customize your project by creating a scope and timeline to deliver the best experience for your team.

Step 03

Implement

Oyster maintains consistent communication to monitor and reinforce project goals while completing project deliverables.

Step 04

Deliver

Whether your need is ongoing consulting or project based, Oyster will deliver a quality product that encapsulates your goals and expectations.

Selection of Testing Categories

Trading and Markets Activity 

Investment Banking 

Anti-Fraud and Sales Practices 

Finance and Operations 

Supervision 

Anti-Money Laundering