North does not contest that he failed to conduct a daily review of the firm's electronic communications as required by the Ocean Cross WSPs. Disciplinary action was appropriate here because North had direct responsibility for enforcing Ocean Cross's WSPs for electronic communications yet failed to meaningfully do so.

North argues that he was not responsible for enforcing the firm's WSPs regarding electronic correspondence because the WSPs did not expressly name him as being responsible. Although North testified at the hearing that Schloth was responsible for reviewing Ocean Cross's electronic communications, this assertion contradicted his on-the-record testimony during FINRA's investigation. In addition to his statement in his on-the-record testimony that it was always his responsibility to review Ocean Cross's electronic communications, North acknowledged in his hearing testimony that he knew Schloth did not review the firm's electronic communications. North also testified that, because he "knew that [Schloth] wasn't [reviewing electronic communications]," North accepted that it was his [North's] role to "step in and do it." And FINRA's examiner testified that both Schloth and North told him that North was responsible for reviewing Ocean Cross's electronic communications and that neither Schloth nor North ever told him that Schloth was responsible for email review at Ocean Cross. We find that the preponderance of the evidence establishes that North was responsible for reviewing Ocean Cross's electronic communications under the WSPs. 

North also argues that he should not be liable for failing to review Ocean Cross's electronic communications based on "the condition of the Email . . . in FINRA's production files." According to North, the "condition of the Email" in FINRA's production files demonstrates that "Enforcement procured Smarsh to assist in intercepting and delivering the Email to Enforcement without the knowledge or permission of the brokers sending and receiving those communications." As discussed more fully below, however, North's various claims about Smarsh, Enforcement, and the underlying emails are irrelevant. The underlying emails are not the basis for North's liability. North's liability stems from his failure to review electronic correspondence-including a three-month period in which he conducted no reviews-in accordance with the WSPs for email review that he established and was responsible for enforcing.

did not review the electronic correspondence for substantial periods of time. This was unreasonable and inconsistent with the provisions of the WSPs. North's conduct represents an unreasonable departure from the WSPs and is a sufficient basis for his liability. Based on these facts, we find that North failed to reasonably enforce the firm's WSPs regarding electronic correspondence in violation of NASD Rule 3010(b) and FINRA Rule 2010.

In sustaining FINRA's disciplinary action, we recognize that North was not the only person at Ocean Cross whose performance may have been deficient with respect to enforcing the firm's WSPs regarding electronic communications. We have held repeatedly that the "chief executive officer of a brokerage firm is responsible for compliance with all of the requirements imposed on his firm ‘unless and until he reasonably delegates particular functions to another person in the firm and neither knows nor has reason to know' that a problem has arisen."21 "It is not sufficient for the person with overarching supervisory responsibilities to delegate supervisory responsibility to a subordinate, even a capable one, and then simply wash his hands of the matter until a problem is brought to his attention. . . . Implicit is the additional duty to follow-up and review that delegated authority to ensure that it is being properly exercised." The record does not indicate what actions Schloth took to monitor North's review of electronic communications nor whether Schloth knew North was not reviewing those communications. 

Finally, it is not clear from the record why FINRA did not charge Ocean Cross, although we take official notice of the fact that Ocean Cross terminated or withdrew its registration approximately two months prior to FINRA instituting its action here. "A firm . . . can act only through its agents, and is accountable for the actions of its responsible officers." We think it important to make it clear to firms-by holding them responsible when there are compliance failures-that it is in their interest to have effective, diligent compliance officers to help them remain in compliance with their obligations. Further, as we have said previously, "brokerdealers must provide effective staffing, sufficient resources and a system of follow-up and review to determine that any responsibility to supervise delegated to compliance officers, branch managers and other personnel is being diligently exercised." Indeed, the Commission has previously stated that in some cases it may be more appropriate to hold the firm liable rather than the compliance officer. In this case, we agree with FINRA that its disciplinary action against North was warranted.