Under FINRA’s rules regarding proper supervision, member firms must:
I. have clear written procedures to supervise the activities of its principals, registered representatives, and other associated persons.
II. designate as an office of supervisory jurisdiction (OSJ) any office of the member that engages in maintaining custody of the funds and/or securities of the member’s customers.
III. prohibit the use of any electronic communication method, including personal electronic devices, for business-related communications unless the use of the devices can be properly supervised and the communications retained.
IV. regularly evaluate the effectiveness of its supervisory policies.
