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.

A Fresh Perspective

Broker-dealer supervisory controls are frequently listed as an important focus of FINRA’s exam priorities. The odds are strong that FINRA will be reviewing these items on your next routine cycle examination. Having an outside resource test your controls provides a fresh perspective of your controls and can identify gaps you may not be aware of.

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

Oyster’s experts have years of industry, FINRA, SEC and state regulatory experience. Our compliance professionals have the expertise to create a testing program customized to your firm and its lines of business. They ask thoughtful questions to quickly assess what areas need the most attention and review.  We provide compliance support that is agile, reasonable and satisfies regulatory requirements.

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. 


Download the Outsourced Testing Services eBook to learn about when outsourcing testing makes sense.


Selection of Testing Categories

Trading and Markets Activity 

Anti-Fraud and Sales Practices 

Finance and Operations 


Anti-Money Laundering 

Our Process

Step 01


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

Step 02


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

Step 03


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

Step 04


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