FINRA Unscripted Podcast: Membership Application Program – Reviewing and Approving Digital Asset Firms
This is a summary of a recent FINRA podcast on Membership Application Program.
Category: FINRA
Let’s Talk Aggregate Indebtedness
Every broker dealer has at least one thing in common – Minimum Net Capital Requirements (“MNCR”). Whether the firm has a $5,000 MNCR or a $100,000 MNCR, the firm’s FINOP must ensure that the broker dealer is at all times (including intra-day) meeting the requirements set forth by FINRA with SEA Rule 15c3-1. The minimum net capital requirement is going to be the higher of the figure set forth by FINRA based upon the type of broker dealer the firm is OR the total of the firm’s Aggregate Indebtedness. Today, let’s specifically talk about the Aggregate Indebtedness to Net Capital Read more about Let’s Talk Aggregate Indebtedness[…]
Key Steps for Starting a Broker-Dealer
Individuals and companies desire to start a broker-dealer for many reasons including to facilitate sales, create an entry point for foreign financial institutions, or be a part of a larger financial plan. Some of the benefits to starting a broker-dealer (vs. purchasing an existing one) include saving money on due diligence, having no prior regulatory or financial issues, and the ability to customize it to fit your desired products and business lines. If you are looking for more pros and cons to starting vs. Buying a broker-dealer, read one of our recent posts on the topic “here”. If you decide Read more about Key Steps for Starting a Broker-Dealer[…]
Understanding the Difference: Series 63, Series 65 Or Series 66
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[…]
Notice to Members 06-23 & Your Firm’s Annual FINOP Review
Back in the early 2000’s, FINRA (then known as the NASD) came out with Notice to Members 06-23 (“Notice”). This Notice goes into detail about the responsibilities of the FINOP. Whether your FINOP is employed full-time in-house or is outsourced, the Notice applies. There are further considerations for the FINOP if the role is outsourced.
Regulatory Notice 22-12 TRACE Amendments
FINRA Adopts Amendments to TRACE Reporting Rule to Require Identification of Portfolio Trades Effective May 15, 2023 if you trade in TRACE-eligible securities and those securities are part of a portfolio trade, you will be required to input an appropriate modifier. The Sale Condition 4 modifier, available via the TRAQS secure web browser and the TRACE FIX protocol (Tag 22004), will be available for this designation. Regulatory Notice 22-12 provides information on the new requirement and considerations for compliance. Background FINRA has amended Rule 6730 to require members to append a new portfolio trade modifier when reporting corporate bond trades Read more about Regulatory Notice 22-12 TRACE Amendments[…]