Reviewing the Controls and Certifying Them Annually

What this video covers

• Why building market access controls is only the starting point, and why regular review must be paired with prompt correction
• What it means to establish, document, and maintain a system for reviewing risk management controls and supervisory procedures
• How an allocating firm reviews a registered broker-dealer customer's performance and the effectiveness of allocated controls
• When weaknesses in an allocation require prompt correction or termination of the allocation arrangement
• Why the annual business activity review is a minimum floor, not a ceiling, and must follow written procedures and be documented
• The different retention rules for written review procedures and documentation of each review
• What the Chief Executive Officer (CEO) must certify annually, why both compliance and completion of the review are required, and why the certification cannot be delegated downward