BRANCH OFFICE INSPECTION CHECKLIST

MANAGER __________________________ DATE _________________________

EXAMINER __________________________
OSJ YES NO
PRINCIPAL IN CHARGE OF THIS LOCATION:_______________________________
PERSON WHO CAN EXPLAIN RECORDS AT THIS LOCATION:
________________________________________________________

I. Files
A. Representative Files YES NO

1. Is there on file for each representative and prospective representative:

a. A copy of FINRA and state License information (U-4)

b. A copy of U-5 from previous firm (if applicable)
c. A copy of a signed applicant affidavit, acknowledging that
no solicitation will be made until prospect is fully licensed
d. Other correspondence relating to that representative

B. Office Records and Customer Files

1. Are there, for all of the Branch Office clients, of both the manager
and representatives, files containing:

New Account Form

Order Ticket for each purchase/sale

Confirmation or Receipt of Order for each purchase/sale

Copies of Correspondence to and from each customer

Copies of Confirmations from Issuers

Customer Holding Record

2. Are there Office Files Containing:

Cash/Checks Received/Disbursed Blotter

Are copies of both sides of the check attached to the blotter?

Page | 1
 YES NO

Were any checks held overnight?

YES NO

If yes, were they forwarded by NOON the next business day?

YES NO

Securities Received/Delivered Blotter

Were copies of Securities Certificates and other documentation attached to

the Blotter?

YES NO

Were any securities held overnight?

YES NO

If yes, were they forwarded by NOON the next business day?

YES NO

3. Advertisements and Sales Literature

Have all Advertisements and Sales Literature been Approved by a Principal?

YES NO

4. Changes in Address or Account Information

Has all documentation requesting any change to account information been

forwarded to the Main Office Location for processing?

YES NO

C. Complaint File

1. Is a complaint file maintained? (A complaint is any written or verbal

notice of displeasure with the firm, any of its' representatives, a custodian
bank or an issuer)

YES NO

Page | 2
 2. Does the complaint file contain

1) actual correspondence or
2) a list of complaints cross-referenced to a customer's file?

Provide a brief summary of any complaints found in the complaint file.

D. Correspondence, Advertising and Sales Literature

1. Have all the investor prospecting and salesman-recruiting

ads published in newspapers or magazines been given
separate approval from the Home Office?

YES NO

2. Have all of the mass-mailing pieces been given separate

approval from the Home Office?

YES NO

3. Are copies of all correspondence periodically sent to

the Home Office?

YES NO

4. Are any other forms of communication with the public

used by the office?

YES NO

If so, please explain or attach a sample.

E. Seminars

1. Have any Seminars been presented by anyone at this location?

YES NO

If Yes, Do Seminar files contain the following:

Invitation
Invitee List
List of Attendees

Page | 3
 Outline of Seminar
Handout Materials

F. Cold Calling and Do Not Call Lists

1. Does anyone at this location cold call individuals?

YES NO

2. Are individuals at this location utilizing the Firm Do Not Call

Procedures?

YES NO

II. Office Procedures

A. Supervision

1. Does the Branch Manager supervise the activities of his representatives by:
(CHECK ALL THAT APPLY)
a. Accompanying them on sales calls
b. Contacting their clients if deemed necessary
c. Reviewing their client files
d. Holding sales meetings
e. Reviewing and initializing incoming and outgoing
correspondence, order forms, applications, etc.
f. Other_______________________

B. Publications

1. Is there a copy of the following publications on file in your

office:

a. NASD Manual
b. MSRB Manual
c. ____ Written Supervisory Procedures

C. Supplies

1. Product Prospectuses
2. Order Forms
3. New Account Forms (NAF)
4. Supply Order Forms
5. Correction Forms

Page | 4
 6. Account Information Change Forms
7. Stationery with proper letterhead (Attach sample)
8. Business Cards (Attach sample)

D. Telephone Listing

1. How is your office listed in the telephone directory:

a. Yellow Pages (Attach copy)

b. White Pages (Attach copy)

E. Office Identification

1. How do you identify your office as a branch of ____:

a. On the outside of the building

b. On the building directory
c. On the window or door

F. Signage

1. Does the office display the appropriate signage?

a. SIPC Sign

G. Web Sites

1. Does any registered person at this location have a personal web site?

YES NO

If yes, please give web address:______________________________

H. Outside Business Activities

1. Does any registered person at this location have an outside business activity?

YES NO

If yes, please list below and verify prior approval of the activity:

Page | 5
__________________________________________ Approved

__________________________________________ Approved

__________________________________________ Approved

__________________________________________ Approved

I . Outside Accounts

1. Does any registered person at this location have accounts at other Broker
Dealers?
YES NO

If yes, please list individual’s name and verify approval with Home Office

__________________________________________ Approved

__________________________________________ Approved

__________________________________________ Approved

__________________________________________ Approved

J. Reports to Investors

1. Does your office use a form to report results to clients?

YES NO

If yes, attach a copy.

K. Contract Examination

1. Are any contractual commitments of the branch office in some name

other than that of ____ ?

a. Office Lease
b. Equipment Leases
c. Advertising Contracts
d. Supply Agreements (Stationery business cards, etc.)

Page | 6
 e. Secretarial and clerical contracts
f. Telephone

If other than WRIS, Please provide copy of current contract.

L. Order Processing

1. Does the Manager take steps to insure that orders are transmitted
as rapidly as possible and that payments and securities are
transmitted in a timely manner?

YES NO

2. If the Branch Office engages in stock and bond business, has the Manager established
an efficient system of monitoring open orders?

YES NO

M. OSJ Branch Offices (For branches which have supervisory jurisdiction

over other branches.)

1. Does the OSJ Manager periodically review the operations of

subordinate Branch Offices?

YES NO

If yes, please attach copy of latest report

2. Has the OSJ Manager established a follow-up procedure to insure

that deficiencies noted in supervisory reviews are remedied in an
efficient and effective manner?

YES NO

N. Location Information

1. Is the office located on the premises of a Financial Institution?

YES NO

If yes, contact Home Office for Additional checklist.

Page | 7
 2. Does anyone at this location utilize Locations of Convenience?

YES NO

If Yes, Please list all Locations of Convenience used:

_______________________________________________________
_______________________________________________________
_______________________________________________________
_______________________________________________________

III. Products Recommended by the Branch

A. Which Products are Offered by the Branch Location?

Mutual Funds

Commodity Pools – Public Offerings

Commodity Pools – Private Placements

Registered Investment Companies – Closed Ended

Investment Advisory Services

B. Mutual Funds

If Mutual Funds are recommended:

a. Have there been any Switches?

YES NO

b. If Yes, Was the Switch:

Approved PRIOR to transaction?

YES NO

Was Switch Letter Sent to Customer?

Page | 8
 YES NO

PLEASE LIST SAMPLING OF MUTUAL FUND TRANSACTIONS/FILES REVIEWED

______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
_________________________________________________

FOR EACH TRANSACTION/FILE PLEASE NOTE THE FOLLOWING ITEMS:

(REPORT RESULTS ON SEPARATE SHEET AND ATTACH TO CHECKLIST)

Breakpoint Analysis Completed

Mutual Fund Calculator Utilized

Class Shares Reviewed with Customer

Notes of Client Conversations

C. Variable Products

PLEASE LIST SAMPLING OF VA TRANSACTIONS/FILES REVIEWED

____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________

FOR EACH TRANSACTION/FILE, PLEASE NOTE THE FOLLOWING ITEMS:

(REPORT RESULTS ON SEPARATE SHEET AND ATTACH TO CHECKLIST)

Page | 9
 Variable Annuity Pre-Sale Form

Completed

Signed by Rep

Signed by Principal

Variable Annuity Exchange Form:

Completed

Signed by Rep

Signed by Principal

D. Municipal Securities and 529 Plans

LIST OF TRANSACTIONS/FILES REVIEWED

____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________

For Municipal Securities:

Account Form Approved by Municipal Principal? YES NO

Transactions Approved by Municipal Principal? YES NO

For 529 Plans

Application Form Approved by Municipal Principal? YES NO

Transactions Approved by Municipal Principal? YES NO

Prospectus Delivery Noted on 529 Blotter? YES NO

Page | 10
 Does the Customer Live in the State of the Plan? YES NO

E. Options

LIST OF OPTIONS TRANSACTIONS/FILES REVIEWED (Note Options Level Approval):

____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________

Account Documents Approved by Options Principal?

YES NO

Transactions Approved by Options Principal?

YES NO

Account Approved Prior to First Transaction?

YES NO

III. Areas of Special Concern and Attention

A. Does the office charge any type of fees to clients for any service?

YES NO

If yes, give details on a separate sheet.

B. Has this office or any representative in it participated in the sale of any product that could be
considered a security without receiving prior Home Office approval?

YES NO

Page | 11
C. Is this office familiar with the company's policy regarding the sale of non-approved
products?

YES NO

D. Are there any complaints in the complaint file you would consider significant? If yes, give
details.

YES NO

E. Does the manager or any representative in the branch office handle tangible or hard asset
transactions?

YES NO

COMMENTS AND NOTES:

_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________

DATE: ___________________________

_____________________________
BRANCH OFFICE MANAGER

_____________________________
EXAMINER

Page | 12