Blog
Office of Supervisory Jurisdiction (OSJ)
An Office of Supervisory Jurisdiction (OSJ) is an office identified by the broker-dealer as having supervisory responsibilities for agents and branch offices within its region. The OSJ has final approval of new accounts, and retail communication. The OSJ may also make markets or structure offerings Functions of an OSJ Each [...]
Our Top 5 Blogs of 2021
MasterCompliance continues to provide clients and the public with guidance on industry focus areas, new rules, compliance foundations, and regulatory priorities. This blog explores our top 5 blogs of 2021. 1. Form ADV Part 2B: Disclosures for Supervised Persons Form ADV Part 2B is a brochure supplement that must contain [...]
Rule 147 Offerings
Rule 147, also known as the intrastate offering exemption, allows for firms to avoid registration with the SEC for intrastate offerings under certain conditions. This exemption seeks to facilitate the financing of local business operations for companies that are organized in the state where it is offering the securities, carry [...]
Fidelity Bond Requirements (FINRA Rule 4360)
FINRA Rule 4360 requires each member firm to join the Securities Investor Protection Corporation (SIPC) and to secure fidelity bonding insurance with specified amounts of coverage based on the firm's net capital requirement. Such firms must maintain fidelity bond coverage that provides for per loss coverage without an aggregate limit [...]
Spinning
Spinning is the practice of allocating highly sought-after IPO shares, also known as hot stock, to individuals who are in a position to direct securities business to the firm. This is why portfolio managers are categorized as restricted persons. These individuals are in a position to direct business to a [...]
Carrying Agreements
Most broker-dealers rely on another member firm to provide clearing, custody, and execution services. Where needed, a carrying firm may provide prime brokerage, exception reports, stock lending and borrowing, financing margin, risk monitoring, direct market access (DMA), and much more. In short, an introducing firm outsources many important jobs. By [...]