|
Compliance at Commonwealth Back to Growing Your Practice Commonwealth and our advisors are subject to numerous rules and regulations set by federal agencies, such as FINRA, and the SEC, and by each individual state. One of the key roles of the broker/dealer is to supervise the securities-related activities of our advisors in order to ensure that each element of the business is run in a manner consistent with both the spirit and the letter of the securities laws and regulations. The Compliance department at Commonwealth functions as your business partner, providing guidance on how the various rules and regulations apply to the business, monitoring and protecting the interests of your customers, and working to proactively help you avoid potential problems. Key functions: In the current dynamic regulatory environment, communication is essential. We keep up a constant stream of communication with you about rules, regulations, guidelines, and changing regulatory expectations. This includes online manuals and checklists, e-mail communications, articles published in the Commonwealth Business Review (CBR), educational sessions at conferences, and teleconferences. In addition, the Compliance staff is available for direct consultation via telephone (with support in both our East and West Coast offices available into evening hours) and annual in-branch visits. Compliance has a face and a name. Within a few weeks of joining the firm, each advisor receives a call from a member of Compliance to introduce you to the firm’s compliance program and requirements. Books and records, client communications requirements, sales practice policies, and certain operational procedures are covered to ensure that you get off on the right foot. An ounce of prevention is worth a pound of enforcement. Paperwork and books and records are a fact of life in the securities business. One of the key elements to Commonwealth’s proactive compliance program is the annual branch office visit, where a compliance advisor conducts a detailed review of your branch office books and records, as well as your sales practices. These visits provide a great training opportunity for both you and your support staff. Out of respect for your busy schedules, we set up most annual branch visits in advance, although we are required to conduct a certain number of surprise audits per year. Before we start our review of your files, you participate in interviews that ask for specific examples of how you run your business, and your past trading activity is carefully examined. Big brother is watching, and we’ve got your back. Sales practice monitoring and surveillance is essential for the success of Commonwealth and our advisors, and it is also a key element of our compliance program. Like all good firms, we monitor advisor trading activities and generate reports that are designed to flag certain patterns of trading that may indicate a problem. Early detection of potential problems helps to identify training gaps and provides an opportunity for corrective action. Clear and effective communication with your clients is critical to your success. The Compliance department has a team of experienced and talented principals available to review and approve your client communications. The standard turnaround time for the review of sales material is two business days, so you won’t miss an opportunity to market your services to prospective clients in a professional and timely manner. When something goes wrong. We look into the matter and help you prepare a defense, if necessary. In-house legal counsel assists in matters relating to Errors and Omissions coverage, as well as to the resolution of customer disputes and regulatory investigations. |
 
|
|