Buying A Broker Dealer: Pros and Cons

Pros and Cons of Buying A Broker Dealer

Considerations for Buying a Broker Dealer

If you find yourself in need of a broker dealer, you have the option to either buy an existing one or start one from scratch. MasterCompliance has years of experience in both brokering broker dealer transactions as well as assisting our clients create new broker dealers, and in our experience buying a broker dealer tends to be the most popular choice. While the speed and convenience of buying a broker dealer are favorable, there are pros and cons to this option you should consider.

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nma process

The NMA Process – Start A New Broker-Dealer

In order to start a new broker-dealer, you must submit a new membership application (NMA) to the Financial Industry Regulatory Authority (FINRA).  The NMA process is often an arduous process.  To assist clients, we have a team of experts that can simplify the process, answer any questions, and get you to the finish line. Read More…

Buy or Start a Broker-Dealer: Weighing the Two Options

Are you looking to start a broker-dealer or buy a broker-dealer? If so, we can assist you in weighing the two options.  Securities Compliance Management, Inc., also doing business as MasterCompliance, is a full-service compliance consulting firm.  We have assisted many clients in starting and buying a broker-dealer.  There are many factors that you should consider before deciding which option is the best for you.   Read More…

FINRA Rule 3210 (Accounts at Other Broker-Dealers and Financial Institutions)

FINRA Rule 3210 (Accounts at Other Broker-Dealers and Financial Institutions), which replaces the previously used NASD Rule 3050, Incorporated NYSE Rules 407 and 407A and Incorporated NYSE Rule Interpretations 407/01 and 407/02, was approved by the SEC in April of 2016, and became effective in April 2017. This is a consolidated rule governing accounts opened or established by associated persons at firms other than the firm at which they are employed, ensuring that member companies, brokers, and advisors maintain ethical standards.  Read More…

FINRA Membership Interview – Part II

[Continued from FINRA Membership Interview – Part I]

What happens during the FINRA Membership Interview?

During the FINRA Membership Interview, the participants will discuss substantially all of the aspects of the firm’s proposed business. Emphasis will be placed on the FINRA, SEC, or MSRB rules applicable to the firm’s intended business, as well as the firm’s supervisory structure, the background and experience of the firm’s principals and representatives, and plans for future direction and expansion. Questions about how the firm will process transactions and how it will supervise activities to maintain FINRA compliance, among other things, must be answered by the individual(s) who will be responsible for those functions.

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FINRA Membership Interview – Part I

So, you’ve decided to start or own a broker-dealer. You have completed Form NMA, submitted it to FINRA Gateway via the New Membership Application process with all of your supporting documents, and have gone through a round or 2 of information requests with the FINRA Membership Application Program Group (the “MAP Group”).  Now, you have just received a request to sit down with FINRA for the Membership Interview.

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