Internal Inspections
An associated person must conduct an annual internal inspection at every OSJ and every branch office that supervises a non-branch office to ensure compliance with securities laws. Other branch offices must be inspected every three years. Inspections must include a review of customer account records to detect irregularities or abuses. The associated person must also test and verify the member’s policies and procedures with regard to:
• safeguarding customer funds and securities
• maintaining books and records
• supervision of supervisory personnel
• transmittal of funds or securities from cust