Overview
This article explains Fi360's audit processes for designation applications, including random audits and those prompted by conduct standards.
Random Audit
Fi360 randomly audits 5% of new and renewing designation applications. Upon submission, an audit may be conducted to ensure compliance with, and maintain the integrity of, the designation-granting process. Individuals who are selected for a random audit will be notified as such and will have ten (10) business days from the date of the request to respond with any requested documentation. In the event any deficiencies are determined, individuals will have thirty (30) days to correct them (e.g., report additional CE hours).
Conduct Standards Audit
Another type of audit is one by an affirmative response to a question within the Conduct Standards Questionnaire. If an applicant submits a violation of the Conduct Standards, the audit is subject to the Qualification and Complaint Procedure and could take up to 30 calendar days to complete. Fi360 may also use the FINRA Broker Check or SEC adviser disclosure databases to assess whether an audited application has potential violations of the Conduct Standard or Code of Ethics.
Audit Documentation
Examples of requested documentation may include proof of graduation (e.g., copy of diploma, transcript) from an educational institution, proof of employment, letter of good standing for a professional designation/license, and past criminal and civil litigation, regulatory event, and financial bankruptcy records.