FINRA Broker-Dealer Compliance Inspection Checklist

This comprehensive finra broker-dealer compliance inspection checklist ensures regulatory compliance with FINRA, SEC, MSRB, SIPC, 15 USC 78o. Annual compliance inspection for FINRA-registered broker-dealers covering suitability, supervision, anti-money laundering, books and records, and continuing education per FINRA Rules 3110, 3310, 4370, and 4510. Securities broker-dealer compliance failures result in FINRA sanctions, fines, suspensions, and client arbitration claims. Complete all sections to

  • Industry: Financial Services & Banking
  • Frequency: Monthly / Quarterly
  • Estimated Time: 60 minutes
  • Role: Compliance Officer / Branch Manager
  • Total Items: 18
  • Compliance: FINRA, SEC, MSRB, SIPC, 15 USC 78o

Supervisory System and Written Procedures

Verify supervisory system per FINRA Rule 3110.

  • Are Written Supervisory Procedures (WSPs) current, covering all business activities, and reviewed at least annually per FINRA 3110?
  • Are Registered Principals designated with supervisory responsibility for each business line and branch?
  • Is daily review of representative communications, order tickets, and transactions being conducted by supervisor?
  • Is annual review of compliance and supervisory procedures completed per FINRA 3120?
  • Are branch inspections conducted at required frequency per FINRA 3110(c) (OSJ: annual, branch: triennial)?

Suitability and Regulation Best Interest

Verify Reg BI compliance per SEC Release 34-86031.

  • Is complete customer profile documenting investment objective, risk tolerance, time horizon, and financial situation on file?
  • Has Form CRS been delivered to all retail customers per Regulation Best Interest?
  • Is recommendation documentation demonstrating how recommendation was in customer's best interest maintained?
  • Are material conflicts of interest in recommendations disclosed to customers per Reg BI requirements?
  • Is enhanced supervisory review applied to recommendations of complex products (alternatives, leveraged ETFs)?

Books, Records, and Retention

Verify record-keeping per FINRA 4510 and SEC Rule 17a-4.

  • Are order tickets, trade confirmations, and account statements retained for minimum 3 years (6 years for certain records) per SEC 17a-4?
  • Are electronic records stored on WORM (Write Once Read Many) media per SEC 17a-4(f) requirements?
  • Are all business-related electronic communications (email, text, social media) archived and reviewable?
  • Are net capital computations current with required minimum maintained per SEC Rule 15c3-1?

Representative Registration and CRD

Verify registration per FINRA Rule 1210.

  • Are all registered persons' CRD records current with accurate U4 disclosures?
  • Are U4 amendments filed within 30 days of reportable events (customer complaints, civil judgments, criminal matters)?
  • Are all registered persons current with FINRA Regulatory Element CE requirements?
  • Are registered persons with recent disclosures subject to heightened supervision procedures per FINRA RN 19-07?

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Why Use This FINRA Broker-Dealer Compliance Inspection Checklist?

This finra broker-dealer compliance inspection checklist helps financial services & banking teams maintain compliance and operational excellence. Designed for compliance officer / branch manager professionals, this checklist covers 18 critical inspection points across 4 sections. Recommended frequency: monthly / quarterly.

Ensures compliance with FINRA, SEC, MSRB, SIPC, 15 USC 78o. Regulatory-aligned for audit readiness and inspection documentation.

Frequently Asked Questions

What does the FINRA Broker-Dealer Compliance Inspection Checklist cover?

This checklist covers 18 inspection items across 4 sections: Supervisory System and Written Procedures, Suitability and Regulation Best Interest, Books, Records, and Retention, Representative Registration and CRD. It is designed for financial services & banking operations and compliance.

How often should this checklist be completed?

This checklist should be completed monthly / quarterly. Each completion takes approximately 60 minutes.

Who should use this FINRA Broker-Dealer Compliance Inspection Checklist?

This checklist is designed for Compliance Officer / Branch Manager professionals in the financial services & banking industry. It can be used for self-assessments, team audits, and regulatory compliance documentation.

Can I download this checklist as a PDF?

Yes, this checklist is available as a free PDF download. You can also use it digitally in the POPProbe mobile app for real-time data capture, photo documentation, and automatic reporting.

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