Running a broker dealer is an expensive task these days – more regulations, hyper focus on transparency in the books and records, and studying all potential fraud risks within broker dealers.

Cutting costs can seem like a daunting feat for anyone. One of the easiest ways to manage your broker dealer without breaking the bank is outsourcing your FINOP and accounting roles.

To hire the best inhouse FINOP, a broker dealer will require at least an industry experienced accountant/financial officer along with a Series 27/28 licensed FINOP. In addition to salaries, the broker dealer must have benefits in order attract this kind of talent. Add to that, the general overhead expenses will increase. The costs can be overwhelming.

Where to turn?

The outsourced FINOP.

For a fraction of the costs, a broker dealer can engage with an outsourced FINOP who is also qualified to handle the accounting end of the broker dealer. In an industry with many accounting quirks, having an accountant/FINOP that knows the broker dealer industry will prove invaluable during audit times.

What will your outsourced FINOP be required to handle? This will vary depending on the size of the broker dealer. Your outsourced accountant/FINOP will maintain the books and records, prepare financials, and file regulatory reports with FINRA – FOCUS, SSOI, Form Custody, SIPC, and others. Additionally, your outsourced FINOP will also make sure that the firm is continuously within the Net Capital requirements for the broker dealer.

Take the time to compare the benefits of hiring full-time employees versus engaging an outsourced FINOP. Securities Compliance Management provides expert outsourcing functions to help your broker dealer prosper in this crazy industry. For more information, please contact us.