Q: What impact does the updated Rule 3010 have on my firm's audit program?
A: The NASD has now mandated inspection cycles for its supervisory and non-supervisory branch offices and unregistered locations. Previously, members were required to inspect non OSJ offices on a perodic basis that fit with the firm's business and risk exposure. In addition, firms are now required to determine whether any of their branches should be subject to "heightened" inspections. Notice to Members 04-71 discusses the changes extensively.
Q: Are "locations of convenience" required to be inspected?
A: Even though a location of convenience is considered a non-branch location, they still require an examination on a regular periodic basis.
For further information call us today at 1-877-423-4636.
