An Office of Supervisory Jurisdiction (OSJ) is an office identified by the broker dealer as having supervisory responsibilities for agents and branch offices within its region. The OSJ has final approval of new accounts, and retail communication, The OSJ may also make markets or structures offerings.
A broker dealer may have several types of offices in its organizational structure. Each type of office is allowed to operate in a designated capacity depending on what type of office it is. An office of supervisory jurisdiction is allowed to operate at a very high level. It must have a resident principal to oversee its activities and an OSJ may supervise branch offices and satellite offices within its geographic area. An OSJ may conduct any type of business that the member firm is authorized to conduct. The principal of the OSJ must maintain a presence onsite to ensure the OSJ and the branches and agents it supervises are conducting business properly. The OSJ maintains the central files for complaints and retail communication.Final approval for new account and retail communication take place at the OSJ. FINRA will present a number of questions relating to OSJs on many of the principal level exams. One of the questions you may see will ask if a single principal may be the resident principal at more than one OSJ. The answer is yes they can, so long as the person has significant experience, can maintain a consistent physical presence in both offices and FINRA is notified of the arrangement. Take note ! FINRA does not have to approve the arrangement, they must simply be notified.. Get more great test details like this in our exam prep software, video classes and textbooks, and be ready to ACE your principal exam.
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