Rule 3130. Annual certification of compliance and supervisory processes.

(a) Designation of Chief Compliance Officer.

Each member shall designate and specifically identify on Schedule A of Form BD one or more principals to serve as a chief compliance officer (CCO).

(b) CEO certification.

Each member shall have its chief executive officer (CEO) (or equivalent officer) certify annually, as set forth in paragraph (c), that the member has in place processes to:

1. Establish, maintain, review, test, and modify written compliance policies and written supervisory procedures reasonably designed to achieve compliance with applicable FINRA rules, MSRB rules, and federal securities laws and regulations; and 2. Modify such policies and procedures as business, regulatory, and legislative changes and events dictate.

(c) Form and content of certification.

The CEO certification must be in writing and must:

1. State that the member has in place the processes described in paragraph (b)(1) and (2); 2. State that the CEO has conducted one or more meetings with the chief compliance officer in the preceding 12 months to discuss such processes; 3. State that the CEO has discussed with the chief compliance officer the matters set forth in paragraph (c)(2); 4. State that the member's processes, with respect to paragraph (b), are evidenced in a report reviewed by the CEO, the chief compliance officer, and such other officers as the member may deem necessary; and 5. State that the report has been submitted to the member's board of directors and audit committee, or, in the case of a member that has neither a board of directors nor an audit committee, to a committee of senior management.

The certification must be executed by the CEO no later than the date the member is required to file the FOCUS Report Part IIA or Part II for the year-end period.

(d) Records.

The certification, the underlying report, and the records of the meetings required by paragraph (c)(2) shall be preserved in accordance with SEA Rule 17a-4 for a period of not less than three years, the first two years in an easily accessible place.