What is FINRA Rule 3120?

FINRA Rule 3120, also known as the "Supervisory Control System" rule, is a regulation enforced by the Financial Industry Regulatory Authority (FINRA) in the United States. It requires broker-dealer firms to establish and maintain a system of supervisory control policies and procedures (SCPs) to ensure compliance with securities laws and regulations. Here's a breakdown of the rule:

What it does:

Key requirements:

It's important to note:

Additional resources: