Compliance System

Securities SurveillanceStation™

SSS is a fully automated Compliance Exception Reporting System designed to meet the needs of any firm’s compliance department.  By utilizing daily file downloads from your clearing firm, DST, DAZL and product sponsors, the system searches all client accounts daily for numerous activities and trends that could result in potential sales practice abuses and rule violations.  The system will automatically create exception reports for those accounts that fall outside of pre-set parameters contained in the system.  This allows your compliance personnel to review bona fide exception reports that identify actual problems or problematic trends instead of having to search for potential problems manually.

All system reports and parameters have been designed by an ex-regulatory examiner and compliance officer with over 25 years experience in the securities industry.  Any or all of the pre-set parameters can be replaced by your own parameters at any time.

SSS utilizes numerous calculations and comparison formulas within each report type to give you an accurate picture of potential problems in each and every client account.

The system will search all client account activity daily and generate exception reports for any account that exceeds the established parameters.  

Exception Reports:

  • Churning 
  • Account Turnover 
  • Margin Accounts 
  • Excessive Trading 
  • Mutual Fund & Annuity Switching 
  • Concentrated Positions 
  • Commission Excess 
  • Low Priced Securities 
  • Discretionary Account Activity 
  • Concentrated Commissions 
  • Principal Markups & Markdowns 
  • Option Account Activity 
  • Account Losses 
  • Sales Practice Trends 
  • Associated Persons Account Activity 
  • Blue Sky/Licensing Issues for Reps 
  • Rep Activity 
  • Front Running 
  • Hot Issue Underwriting 
  • Day Trading 
  • Product Suitability 
  • Money Laundering 
  • Mutual Fund Breakpoints