New supervisory control requirements for branch and remote offices

Abstract

Purpose

To provide an overview of the new uniform definition of “branch office” and to discuss how that definition will influence broker‐dealer supervisory programs.

Design/methodology/approach

Discusses the new definition of “branch office”, describes new NASD and New York Stock Exchange supervisory control system requirements and supervisory requirements for branch offices and other locations, and suggests guidelines for developing a branch office or remote office supervisory program.

Findings

In the current regulatory environment, no broker‐dealer should overlook regular and rigorous attention to supervision of branch offices and other remote locations. And in light of the new definition of a branch office, each broker‐dealer must include in its review and analysis a close evaluation of how the broker‐dealer supervises every location where broker‐dealer personnel engage in activities on behalf of the broker‐dealer and must document that evaluation.

Originality/value

Important reference for broker‐dealers’ branch office supervisory programs that underscores the need to pay proper attention to remote locations.

Citation

Kroll, A.N. and Franzon, A.W. (2005), "New supervisory control requirements for branch and remote offices", Journal of Investment Compliance, Vol. 6 No. 3, pp. 32-44. https://doi.org/10.1108/15285810510659301