5.1.5.2. Internal Inspections
An associated person must conduct an annual internal inspection at every OSJ and every branch office that supervises a non-branch office to ensure compliance with securities laws. Other branch offices must be inspected every three years. Inspections must include a review of customer account records to detect irregularities or abuses. The associated person must also test and verify the member’s policies and procedures with regard to:
•Safeguarding customer funds and securities
•Maintaining books and records
•Supervision of supervisory personnel
•Transmittal of funds or securities from customers to third-party acc
