What Exactly is a Spot Check? A spot check is a review of the financial status of a randomly chosen brokerage by one of RIBO's Investigators. The Principal Broker is notified in writing that a spot check will be conducted at least two weeks in advance. An outline of the information normally requested during the course of a spot check accompanies the notification, in order for preparations to be made. A call is then placed by the Investigator to schedule an appropriate date. The spot check begins with a series of standardized questions relating to the firm's current business practices. For the most part, these questions are directed to the Principal Broker unless another individual has been appointed. Following questioning, a review of the books and records takes place. In the normal course of a visit, the Investigator is required, as a minimum, to review a brokerage's last two RIBO filings (i.e. Positions Reports) and most current non-filing month end. To complete the review, an audit trail is conducted on selected client files. The Investigator then holds a discussion with the Principal Broker to summarize the findings. The length of time it takes to conduct a spot check depends upon the accessibility of material. In all cases, RIBO staff work with the brokerage to ensure they understand the summary and make sure that any problems arising from a spot check are dealt with as soon as possible. Upon return to the RIBO office, the Investigator prepares a summary. Any areas of non-compliance noted during the visit are included in the report that is forwarded to the brokerage. A spot check is often the first contact that many brokers have with a member of RIBO staff. RIBO Investigators are highly trained and are able to answer many of the questions you may have. Please use their visit as an opportunity to learn more about RIBO and its reporting requirements. Information Normally Requested During a RIBO Spot Check Balance Sheet Income and Expense Statement Aged Accounts Receivable Insurer Accounts Payable General Ledger Bank Statements (adjusted for cheques issued but not cashed as of statement date) Cancelled Cheques (Trust and General Accounts) Trust Investment Documents Supporting Documentation for Shareholder Loans/Advances Current Errors and Omissions and Fidelity Bond Policies Client Consents for any Unlicensed Insurance Used Continuing Education Certificates for all Licensed Individuals List of all Markets Including Sub-Brokers, Intermediaries, etc. Most Recent Externally Prepared Financial Statements Retail Sales Tax Remittance File Please note: In the normal course of a visits we are required to review at least your last two RIBO filings (i.e. position reports) and your most current non filing months end. In some circumstances, the Investigator may wish to review the above material for the past 18 months.