When a firm makes the decision to become a registered broker dealer with the Financial Industry Regulatory Authority (“FINRA”), the feelings that follow can be quite overwhelming. Unless one has much experience in the FINRA world, it can be a scary step and possibly intimidating.
The mission of FINRA is to work with a broker dealer to ensure investor protection, market integrity, and confirm that the broker dealer’s practices and programs are in compliance with the industry’s rules and regulations. The FINRA institution desires that every broker dealer is successful in mitigating risk for the client and in turn becomes a successful broker dealer.
Your firm may still be thinking “This is so overwhelming. I still don’t know where to turn to get started”. This is where a firm such as Securities Compliance Management can step in. At Securities Compliance Management (“SCM”), there is a team of qualified professionals who will guide your broker dealer through the entire New Member Application process. SCM becomes the liaison between FINRA and your broker dealer.
Once you engage with Securities Compliance Management to help you through the new member application process, your broker dealer needs to create a solid business plan. In order to present this to FINRA, it must include how the broker dealer is going to manage compliance, supervision, and operational structure. The SCM team will help your broker dealer with this along with the many other aspects and questions that arise over the course of the application phase.
Also, during the application phase, your broker dealer will be assigned a Risk Monitoring Analyst who works for FINRA. Your Risk Monitoring Analyst is available to help you with your questions and concerns. It is good practice to have conversations with your Risk Monitoring Analyst as to develop a comfort level with them and knowing that your Risk Monitoring Analyst along with everyone at FINRA really are here to help you succeed.
Between your Securities Compliance Team serving as your liaison to facilitate your broker dealer’s application process and having discussions with your assigned Risk Monitoring Analyst, becoming a FINRA registered broker dealer does not have to be an overwhelming process. Your firm can be a FINRA registered broker dealer within months with the right team on your side.
For more information about how Securities Compliance Management can help ease the anxiety of starting a new broker dealer, please contact SCM here. We will be happy to discuss the process more in depth with you and help you determine the right steps to get your broker dealer registered with FINRA.
