What is an osj in a broker dealer

what is an osj in a broker dealer

Key reasons for joining an OSJ group

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. Sep 30, †Ј Our Broker-Dealer and OSJ Cambridge Investment Group, Inc. Cambridge Investment Group, Inc. is a privately controlled financial solutions firm focused on serving independent financial advisors and their investing clients.

Financial advisers making the move to independence face a slew of decisions. Among them are whether to obtain a Series 24 license and become your own office of what is an osj in a broker dealer jurisdiction, join a firm that provides oversight through its back office or join an existing OSJ group to provide supervision and additional support. Today we are seeing more and more advisers Ч often successful, established producers Ч join OSJ groups.

In the past, only producers not meeting minimum-production levels chose this option. Affiliation with an OSJ group can provide the intimacy of a smaller firm, combined with the strength and stability of a large broker-dealer. The benefits of the extra support can be apparent in many areas, including increased transition services, operational efficiencies and expedited compliance reviews.

Economies of scale. Because broker-dealers typically can give larger producer groups more competitive pricing on items such as payout, ticket charges and basis points on fee-based accounts, many advisers find that joining an OSJ group represents a better deal financially than joining the broker-dealer directly. Lead generation. Some OSJs offer lead-generation programs not offered directly by broker-dealers, such as ones based on geography or specific niches.

Practice management and coaching. To provide their advisers access to experts such as attorneys and certified public accountants, as well as to coaching, some larger OSJs hold their own conferences. These offer opportunities to network and share ideas, as well as professional camaraderie.

Deciding whether to affiliate directly with a broker-dealer, become an OSJ or join an existing OSJ involves evaluating many factors in your own business, including finances, culture and contractual relationships. Does it make financial sense for you? Affiliating with an OSJ requires paying an override for supervision. Evaluating whether the override is worth the extras for your business is important. Supervisory services include the monitoring of trades and e-mails, keeping pace with changing regulatory procedures and ensuring that the procedures are followed by affiliated advisers.

For many advisers, the fees are well worth the costs. Is the culture a good fit for your practice? One of the most vital intangibles in helping advisers select broker-dealers how to alter shorts leg width OSJ groups is whether their businesses have cultural synergy.

This is even more important when choosing an OSJ group because, in most cases, advisers work more closely with their OSJ than with their broker-dealer. Finding an OSJ group with a similar business model and culture is important. Do you have a safety net? Affiliating with any organization usually involves taking precautions to make sure that you will be protected if you leave.

If you affiliate with an OSJ group, have a clause in your contract stating that, if you choose to leave after you have met the terms of your agreement, you can remain affiliated with the broker-dealer and obtain your Series 24 license for supervision. Perhaps what is most important is evaluating your options carefully and choosing the scenario that is best for you and your business.

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Interdependent Advisors is our office of supervisory jurisdiction (OSJ). As our OSJ, they provide assistance in the areas of compliance, licensing, marketing, practice management, and due diligence, which allows us to focus more of our time serving clients. Broker-dealers are required to register their branch offices with FINRA and other regulatory and/or state authorities.4 When registering, firms must indi-cate whether or not the branch will be registered as an Office of Supervisory Jurisdiction (УOSJФ) for the firm. OSJ branches require at least one qualified and. Sep 09, †Ј Affiliation with an OSJ group can provide the intimacy of a smaller firm, combined with the strength and stability of a large broker-dealer. The benefits of .

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. 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. 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.

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