The SEC's Office of Compliance Inspections and Examinations (OCIE), in cooperation with FINRA, published its second-ever National Risk Alert, this issue on Broker-Dealer Branch Inspections. The Alert provides broker-dealers with information on developing effective pols and procedures for conducting branch office inspections.  It also reminds firms of their supervisory obligations under FINRA rules, and illustrates some "Best Practices" and "Worst Practices" - i.e., common deficiencies. What You'll Find In this Alert -

• Topic: Broker-dealer branch inspections
• Objectives: Encourage firms to create effective policies and procedures for their branch inspections.
• Key Takeaways:
• A broker-dealer’s branch inspection program is a key part of its supervisory system.
• Exam staff have found a number of deficiencies in branch inspections conducted by firms.
• This Risk Alert presents a joint report by OCIE staff and FINRA staff, highlighting a number of practices that examiners have observed that are found in effective branch office supervisory systems.

[C-I Note: By Thursday morning, we will have posted on the site our take on the Risk Alert.  We'll also report on Congressional testimony given by SEC Inspector General H. David Kotz.] To access the Alert, go to:  [FINRA Regulatory Notice 11-54, Nov. 2011] or   [SEC PR 11-250, 11/30/11]