Broker-Dealer Rule 3120/3130 Services

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.