A certification examination is based on an explicit set of competencies. These competencies have been determined through a job analysis study conducted on practitioners. The competencies are subdivided into domains, subdomains, and tasks. As the CSCP tests content only pertaining to these competency statements, they serve as the outline, or blueprint of the examination.


Download Competency Statements

 

CSCP Competency Statements

Domain 1 | Compliance Policies and Procedures      7-9%
Subdomain A
Policy and Procedure Development
1
Assist in developing a compliance program to ensure adherence to internal company policies, procedures, and processes and external laws, rules, and regulations.
    
2
Assist in translating compliance requirements into written policies, procedures, and controls.
    
Subdomain B
Policy and Procedure Monitoring and Maintenance
    
1
Monitor the regulatory environment for new rules and regulations.
    
2
Implement and update the firm’s compliance program.
    
3
Monitor for compliance with the firm’s policies, procedures, and all applicable regulations.
    

 

Domain 2 | Compliance Program Management      12-14%
1
Conduct ongoing program reviews to ensure compliance program is achieving its intended objectives.
   
2
Assist in developing compliance management systems and operational procedures.
   
3
Assist in developing and managing firm’s compliance calendar.
   
4
Assist in developing exception reports.
   
5
Assist in responding to regulatory inquiries and oversee regulatory examinations.
   
6
Evaluate and test new software that supports compliance activities.
   
7
Meet with departments across the firm on compliance-related matters.
   
8
Meet with supervisory personnel on compliance-related matters.
   
9
Oversee registration / licensure of the firm and its personnel.
   
10
Review internal controls.
   
11
Participate in development and implementation of the annual compliance plan.
   

Domain 3 | Monitoring and Surveillance Systems     35-37%
Subdomain A
Exception Reports
   
1
Review exception reports.
    
2
Investigate irregular activities and make recommendations as to the resolution/correction.
   
3
Monitor conformance to firm’s compliance program.
   
Subdomain B
Portfolio Management / Sales Practices
   
1
Assist in creation of standard investment management to ensure all information needed is collected to satisfy securities regulation requirements.
   
2
Confirm that activity in client portfolios is consistent with client investment guidelines and client-directed trade allocations.
   
3
Confirm that client information and source of funds is properly documented.
    
4
Review trading activity/customer accounts to assess suitability concerns.
   
5
Review newly opened/closed accounts to verify conformance with the firm’s policies, procedures, and applicable regulations.
   
Subdomain C
Trading Practices
   
1
Confirm that trading practices are consistent with the firm’s policies.
   
2
Confirm trading practices are consistent with best execution obligations.
   
3
Identify and evaluate possible conflicts of interest.
   
4
Review high risk trades.
   
5
Review trades for adherence to trading limits and risk limits.
   
6
Review trader’s hedging activities.
   
7
Review inventory for compliance with firm’s aged inventory policy.
   
8
Review transaction to ensure that only approved products are being sold / bought.
   
9
Review mark-up on transactions.
   
Subdomain D
Trade Allocations
   
1
Evaluate proper allocation of investment opportunities among clients.
   
2
Conduct review of “block trades/bunching” trading allocation to confirm that shares were properly allocated among clients.
   
Subdomain E
Code of Ethics Oversight
   
1
Ensure that required staff has disclosed all internal / external brokerage accounts.
   
2
Conduct pre-clearance for personal trading activities, where required.
   
3
Monitor personal trading for adherence to internal policies and external regulations.
   
4
Monitor personal trading activities for evidence of market timing and insider trading or appearance of conflict.
   
5
Review outside business activities according to firm’s policy.
   
6
Review gifts and gratuities − given and received.
   
Subdomain F
Advertising, Marketing, and Corporate Communications
   
1
Review, track, and maintain records related to advertising, sales literature, and other company documents for regulatory compliance.
   
2
Review written correspondence for regulatory compliance and required principal approvals.
   
3
Conduct surveillance of electronic correspondence; review for red flags; conduct management follow-up.
   
4
Review disclosures to determine that materials are in compliance with relevant regulations and any identifiable standards.
   
5
Monitor advertising and marketing disclosures for accuracy of performance and attribution claims.
   
6
Review new advertising against regulations requiring filing with FINRA.
   
7
Review and monitor non-cash compensation arrangements.
   
8
Review referral fee arrangements.
   
Subdomain G
Audits and Inspections
   
1
Conduct internal department compliance audits.
   
2
Conduct branch office inspections.
   
3
Conduct AML audits.
    
4
Participate in liaising between firm/staff and external regulatory auditors.
   
5
Prepare written report of all audits and inspections.
   
6
Document recommendations or areas needing remediation.
   
7
Track and monitor items needing remediation to resolution.
   
Subdomain H
Customer Complaints
   
1
Track incoming, in-progress, and resolved customer complaints.
   
2
Investigate customer allegations and inquiries and respond where appropriate.
   
3
Correspond with the client and/or firm’s legal counsel regarding resolution of a complaint.
   
4
Ensure all complaints are reported accurately and timely under NASD 3070 and/or Form U4/U5.
   
5
Evaluate potential risk to the firm associated with customer complaint in accordance with applicable regulations and guidelines.
    
6
Document resolution of client complaints.
   

Domain 4 | Recordkeeping     9-11%
1
Monitor to ensure accurate creation and retention of required records.
    
2
Review required records, including electronic records.
   
3
Document advertising/marketing reviews.
   
4
Document exception report review and resolution.
   
5
Maintain records of branch audits or other inspections, including recommendations, follow-up, and management responses.
   

Domain 5 | Enforcement     7-9%
1
Identify appropriate disciplinary standard.
   
2
Make recommendation on course of action within scope of authority.
   
3
When necessary, recommend action of an informative, corrective, or disciplinary action.
   
4
Conduct follow-up evaluation after corrective or disciplinary action.
   
5
Maintain records of all disciplinary actions and steps taken.
   

Domain 6 | Training      4-6%
Subdomain A
Compliance Education
   
1
Monitor applicable Notices to Member/Information Memorandum/Regulatory Actions and communicate information to appropriate employees.
   
2
Implement firm’s compliance education and training programs.
   
3
Educate departments across the company to assist them in their understanding of regulatory and legal obligations.
   
4
Prepare updates for field staff, educating and informing appropriate personnel of regulatory updates and changes in internal policies and procedures.
   
5
Answer questions from personnel on compliance policies, procedures and regulations.
   
6
Maintain the compliance program resources database.
   
Subdomain B
Continuing Education
   
1
Monitor compliance with continuing education requirements for regulations and as determined by the firm.
   
2
Conduct annual firm element needs analysis.
   
3
Develop, implement, and track firm’s element continuing education plan.
   
4
Escalate issues related to non-compliance with firm’s continuing education plan.
   
5
Obtain outside provider or develop company-sponsored continuing education program for appropriate personnel.
   

Domain 7 | Reporting     6-8%
1
Prepare reports and filings for regulatory agencies.
   
2
Prepare and file required regulatory reports outlining actions taken in resolution of customer complaints.
    
3
Prepare and file required reports on trading activity of supervised staff.
   
4
Prepare reports for Board and/or Ethics and/or Audit Committee.
   
5
Prepare incident logs.
   
6
Assist in preparation of annual report on compliance program.
   
7
Compile and analyze data for compliance reviews.
   

Domain 8 | Privacy and Confidentiality     1-3%
1
Assist management in developing, documenting, and implementing a privacy policy.
    
2
Advise on adopting appropriate technology, policies, and procedures to ensure data security.
   
3
Monitor secure treatment of client records and information.
   
4
Monitor firm’s maintenance of client records to ensure they are secure from unauthorized alteration or use.
   

Domain 9 | USA PATRIOT and Bank Secrecy Acts     6-8%
1
Develop and maintain the firm’s Anti-Money Laundering Program, including polices and procedures.
   
2
Monitor for red flags related to money laundering or suspicious activities; prepare and file Suspicious Activity Reports.
   
3
Screen new and current customers against the OFAC and SDN lists.
   
4
Respond to requests for information from FinCEN under USA PATRIOT Act Section 314a.
   
5
Review requests for information sharing from other financial institutions.
   
6
Review transactions as part of monitoring the firm’s Customer Identification Program.
    
7
Ensure that any foreign bank account has executed a certification.
   
8
Conduct testing to ensure that Currency Transaction Reports (CTR, CMIR, FBAR) were filed in accordance with the regulations.
   
9
Develop and conduct training under the guidance of the AML Compliance Officer.
   

Domain 10 | Risk Management     3-5%
1
Identify different types of risks impacting the firm.
   
2
Identify and mitigate conflicts of interest.
   
3
Assess the potential impact of risks.
   
4
Assist in development of appropriate risk management systems and operational procedures.
   
5
Conduct risk-based focused audits.
   
6
Conduct internal reviews of problematic activities.
   

Distribution of Operational Items

Cognitive Level
Percentage Ranges
Recall
27 - 31 %
Application
44 - 48 %
Analysis
23 - 27 %