Who must a broker-dealer conduct an annual compliance meeting for?

A broker-dealer is required to conduct an annual compliance meeting specifically for registered representatives and registered principals as part of its obligation to ensure that its associated persons are well-versed in regulatory requirements and the firm's compliance policies. This meeting is essential for keeping these employees updated on changes in regulations, compliance protocols, and industry practices.

Registered representatives are those who sell securities and need to be aware of compliance issues that directly affect their interactions with clients and the markets. Registered principals, who oversee and manage activities within the firm, also play a critical role in ensuring compliance with financial regulations, ethics, and internal policies.

By holding the meeting for both groups, the broker-dealer fosters a culture of compliance within the organization and reinforces the importance of adhering to both legal and ethical standards in securities trading. This approach mitigates risks and helps to maintain the integrity of financial markets.

Although other roles within the firm, such as compliance personnel and employees who are not registered, may also benefit from compliance training, the regulation specifically targets those with direct regulatory responsibilities and interactions.