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When it comes to the potential liabilities associated with compliance failures, the numbers don’t lie. Consider a recent arbitration award case involving a small, independent broker-dealer on the East Coast. Regulators slapped the firm with a $3 million fine, holding it, its CEO and its chief compliance officer jointly and severally liable — which means if the broker-dealer is…

A new firm in Florida wants to tackle a common problem that independent B-Ds have supervising and inspecting their far-flung branch offices, otherwise known as offices of supervisory jurisdiction, or OSJs. With the SEC’s new Regulation Best Interest looming, there are concerns in some quarters about OSJs’ ability to comply with the new rules. Sander…

Independent b/ds are on the hook for their reps’ behavior, even those thousands of miles away. A new compliance consultancy wants to help firms close that gap. Broker/dealers are required to examine their offices of supervisory jurisdiction once a year. For a home office that’s thousands of miles away, that can be a tall task.…