Examinations Archives - MasterCompliance

A summary of requirements for Broker Dealers.

Financial Reporting for Broker Dealers

Posted on December 19, 2022 by SCM Communications

Financial Reporting for Broker Dealers. When you decide to enter the highly regulated broker dealer world, you must arrange to have the properly licensed people registered with your firm. One of those is a FINOP (Financial and Operations Principal). FINOP’s have either a Series 27 license or a Series 28 license. Your broker dealer’s FINOP is required to submit various regulatory filings to FINRA. Note that hiring a bookkeeper or a certified public accountant will not fulfill the requirement of having a licensed FINOP registered with your broker dealer. A new broker dealer, which is defined as a broker dealer Read more about Financial Reporting for Broker Dealers[…]

What are Series 63, Series 65 and Series 66?

Understanding the Difference: Series 63, Series 65 Or Series 66

Posted on November 8, 2022November 8, 2022 by SCM Communications

When a person is preparing to enter the financial services industry as a registered representative or investment advisor representative, they must take—and pass— certain qualification examinations. Firm’s must also understand registration requirements to properly advise employees and ensure licenses are held properly. Failure to do so can result in an investment professional re-taking an exam. Below are frequently asked questions related to the state licensing requirements. What are Series 63, Series 65 and Series 66? The securities industry is composed of licensing requirements at both the federal and state level. Based on the type of business of the Firm, an Read more about Understanding the Difference: Series 63, Series 65 Or Series 66[…]

2022 & 2023 Continuing Education Requirements for IARs

Posted on April 8, 2022 by admin

In November of 2020, the North American Securities Administrators Association (“NASAA”) adopted a new rule (PDF) that will require Investment Advisor Representatives (“IARs”) to complete 12 credit hours of Continuing Education annually, 6 for IAR Ethics and Professional Responsibility Requirements and 6 for IAR Products and Practice Requirements. This will be the first time IARs have been subject to Continuing Education requirements and as NASAA president Lisa A. Hopkins states, is intended to “promote heightened regulatory compliance while also helping investment adviser representatives better serve their clients by remaining knowledgeable of current regulatory requirements and best practices.” 2022 IAR CE Read more about 2022 & 2023 Continuing Education Requirements for IARs[…]

FINRA’s Top Priorities for 2022

Posted on March 11, 2022 by admin

Early in the year, FINRA released their 2022 Report on FINRA’s Examination and Risk Monitoring Program, which is designed to inform member firms’ compliance programs by providing annual insights from FINRA’s ongoing regulatory operations. In this report detailing FINRA’s top priorities for 2022, FINRA addresses 21 regulatory areas which are grouped into 4 categories: (1) Firm Operations, (2) Communications and Sales, (3) Market Integrity, and (4) Financial Management. From these 21 regulatory areas, FINRA highlights 7 that they feel are the most important and affect a large portion of member firms, which are as follows: Reg BI and Form CRS Read more about FINRA’s Top Priorities for 2022[…]

MSRB Reminders: Regulatory Exam Priorities

Posted on June 14, 2021 by admin

As part of its routine examinations, FINRA will often coordinate with the MSRB to ensure its members are complying with applicable rules. MasterComplaince is posting this blog to remind MSRB members of their obligations and to share recent inquiries.

Form ADV-E

Posted on May 21, 2021 by admin

Investment advisers that have custody of client funds or securities are required to undergo an annual surprise examination by an independent public accountant to verify client funds and securities. Form ADV-E is used as a cover page for a certificate of accounting of securities and funds of which the investment adviser has custody, aka a surprise exam report. Form ADV-E contains both information about the adviser and the surprise exam conducted. The Form ADV-E is filled out by the investment adviser and then submitted along with the surprise examination report or statement by the independent public accountant after a surprise inspection of the adviser.