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Offices of Supervisory Jurisdiction (OSJs) must be inspected annually. Non-OSJ branch inspections may be less frequent, based on risk.

The SEC Red Flags Rule requires broker-dealers to establish identity theft prevention programs to detect and respond to suspicious activity.

Borrowing or lending between reps and customers is restricted under FINRA Rule 3240. It requires written consent from the customer and firm approval, except when the relationship falls within permitted categories (e.g., family members).

Misrepresenting risks violates Rule 2210 (communications) and Rule 2111 (suitability). Supervisors must prevent misleading statements in recommendations.

The CEO (or equivalent executive) must certify annually that the firm maintains adequate supervisory systems and compliance policies. This emphasizes accountability at the highest level.