Overview of Compliance Review Process

1. Initial Notice - Auditor sends Initial Compliance Review Notice to broker via email requesting the return of the Compliance Review Questionnaire (REC-550) and transaction log (if applicable).


2. Request for Transaction Files/Trust Account Documents - If there are transactions from the previous 3 years, the auditor will send a Document Request via email.
   1. If there are no transactions, the auditor will close the review.
   2. The broker will submit the files to the auditor via email, file site, etc.


3. Transaction File/Trust Account Review - The submitted files will be reviewed by the auditor.
   1. If necessary, any questions from the file review or additional information/documentation will be requested via email.


4. Reporting - When the file review is complete, the auditor will inform the broker of the results via email.
   1. If there are no violations, the broker will receive an email stating that the review resulted in no violations being found and a request to schedule an exit interview.
   2. If there are violations found, the broker will receive the Examination of Records and a request to schedule the exit interview.


5. Completion - If there are violations, the broker (and affiliated licensees, if applicable) could receive a warning letter, commission directive, fine, etc.

Note: There may be a few months between the time of the exit interview and notice of discipline from the Commission.