Rules Regarding Supervision, Supervisory Control and CEO Certification

* Note: FINRA Rule1 3130 (Annual Certification of Compliance and Supervisory Processes) replaces NASD Rule 3013 and the corresponding provisions in Incorporated NYSE Rule 342.30 and related NYSE Rule Interpretations (effective December 15, 2008). See Regulatory Notice 08-57 and SR-FINRA-2008-030 for additional information.

 

This page consolidates information regarding NASD Rule 3012 (Supervisory Control System), FINRA Rule 3130 (Annual Certification of Compliance and Supervisory Processes) and amendments to Rule 3010 (Supervision). In addition, the resources provide information regarding amendments to NASD Rule 2510 (Discretionary Accounts), NASD Rule 3110 (Books and Records) and NASD IM-3110 (Customer Account Information).

 

See Guidance on Complying with NASD Rule 3012 and FINRA Rule 3130.

 


Rulemaking Activities

  • SR-FINRA-2008-030 Rule Change to Adopt FINRA Rule 3130 (Annual Certification of Compliance and Supervisory Processes) in the Consolidated FINRA Rulebook (Effective Date: December 15, 2008)

  • SR-NASD-2007-049 Amendments to NASD Rule 3013* and Accompanying IM-3013* to Permit Members to Designate Co-Chief Executive Officers and Multiple Chief Compliance Officers to Discharge the Requirements of Those Rules (Effective Date: May 16, 2007)

Notices

  • Regulatory Notice 08-57
    FINRA Announces SEC Approval and Effective Date for New Consolidated FINRA Rules; Effective Date: December 15, 2008

  • Regulatory Notice 08-24
    Proposed Consolidated FINRA Rules Regarding Supervision and Supervisory Controls: Comment Period Expired: June 13, 2008

  • NASD Notice to Members 07-32
    NASD Amends Rule 3013* and Interpretive Material 3013* to Permit Members to Designate Co-Chief Executive Officers and Multiple Chief Compliance Officers; Compliance Date: July 16, 2007

Additional Guidance

 

Education and Training

 

Classroom Learning

  • Compliance Essentials: Weeklong Program
    This course covers the material from four separate classroom learning courses: Internal Risk Assessments of Broker-Dealer Firms, Responding to Regulatory Inquiries and Preparing for Regulatory Examinations, and Supervision in the Securities Industry I and II.

  • Supervision in the Securities Industry I
    This course explains FINRA and SEC rules and regulatory guidance governing supervision of employee actions.

  • Supervision in the Securities Industry II
    This course covers hiring practices and supervision of outside securities transactions and sales and trading activities. Case studies demonstrate supervisory situations and lead participants through the decision-making process.

  • Drafting and Maintaining Written Supervisory Procedures
    This course covers the rules that require firms to establish and maintain a system to supervise the activities of registered representatives and associated staff. The course focuses on hands-on casework that allows participants to implement practices for developing supervisory procedures.

 

Webinars

  • Written Supervisory Procedures (Small Firm Series) • On-Demand Program (live air date: April 15, 2009)
    This video webinar delivers practical information on the drafting and implementation of written supervisory procedures (WSPs). The program is designed to address regulatory requirements and compliance practices from a small firm perspective.

 

Questions 

 

Please contact the Office of General Counsel, Regulatory Policy and Oversight at (202) 728-8071.

 

 

Historical Information

 

Rulemaking Activities

 

  • SR-NASD-2005-084 Amendments to NASD Rule 3012 to Require Members Relying on the "Limited Size and Resources" Exception to Report Electronically to NASD their Reliance on the Exception (Effective Date: February 14, 2006)

  • SR-NASD-2005-121 Amendments Regarding Deadlines for Submission of Initial Annual Report Under Rule 3012 and Execution of Initial Annual Certification Under Rule 3013 and IM-3013 (Effective Date: October 14, 2005)

  • SR-NASD-2002-162 Proposed Supervisory Control Amendments (Original Effective Date of December 17, 2004 was extended to January 31, 2005)

  • SR-NASD-2004-116 Amendments to Supervisory Control and Inspection Procedures Rules (Effective Date: January 31, 2005)

  • SR-NASD-2003-176 Chief Executive Officer and Chief Compliance Officer Certification Proposal (Compliance Date: December 1, 2004)

 

Notices

 

  • NASD Notice to Members 06-11
    SEC Approves Amendment to NASD Interpretive Material 3013 Regarding Timing of Submission of Report that Evidences Processes to a Member's Board of Directors and Audit Committee; Effective Date: March 17, 2006

  • NASD Notice to Members 06-04
    SEC Approves Amendments to NASD Rule 3012 to Require Members Relying on Rule 3012's "Limited Size and Resources" Exception to Notify NASD of their Reliance; Effective Date: February 14, 2006

  • NASD Notice to Members 05-75
    Amendments Regarding Deadlines for Submission of Initial Annual Report under Rule 3012 and Execution of the Initial Annual Certification under Rule 3013 and IM-3013

  • NASD Notice to Members 05-29
    Guidance Regarding Rule 3012(a)(1) Requirement to Test and Verify a Member's Supervisory Policies and Procedures

  • NASD Notice to Members 05-08
    Guidance Regarding the Application of the Supervisory Control Amendments to Members' Securities Activities, Including Members' Institutional Securities Activities

  • NASD Notice to Members 04-79
    SEC Approves New Chief Executive Officer Compliance Certification and Chief Compliance Officer Designation Requirements; Compliance Date: December 1, 2004

  • NASD Notice to Members 04-71
    SEC Approves New Rules and Rule Amendments Concerning Supervision and Supervisory Controls; Effective Date January 31, 2005

 

 

1 The current FINRA rulebook includes (1) FINRA Rules, (2) NASD Rules and (3) rules incorporated from NYSE (Incorporated NYSE Rules).While the NASD Rules generally apply to all FINRA member firms, the Incorporated NYSE Rules apply only to those members of FINRA that are also members of the NYSE (Dual Members). The FINRA Rules apply to all FINRA member firms, unless such rules have a more limited application by their terms. For more information about the rulebook consolidation process, see Information Notice 03/12/08.