Series 27: Notification Of Non-Compliance Or Material Weakness

Notification of Non-Compliance or Material Weakness

The independent public accountant must notify the firm’s chief financial officer if it finds that:

• • The firm is not complying with the financial responsibility rules
• • The firm is not complying with FINRA rules requiring the firm to send account statements to its customers
• • There are material weaknesses in the firm’s supervisory controls regarding the financial responsibility rules

A material weakness is a deficiency in a firm’s supervisory controls, and