Final answer:
FINRA requires each Office of Supervisory Jurisdiction (OSJ) to have at least one resident principal. This person is tasked with supervising the securities business and ensuring regulatory compliance. There may be exceptions allowing non-resident supervision, subject to specific conditions.
Step-by-step explanation:
The Financial Industry Regulatory Authority (FINRA) outlines stipulations for the supervision of activities within member firms. Each Office of Supervisory Jurisdiction (OSJ) is required to have at least one resident principal to supervise the office. This individual is responsible for overseeing the securities business conducted by the office, ensuring compliance with regulatory requirements.
In certain circumstances, FINRA may permit a non-resident principal to supervise an OSJ, although this would typically be subject to stringent conditions and close regulatory scrutiny. Broker-dealers should reference the most current FINRA rules and any applicable regulatory notices for detailed information on principal requirements for OSJs.