Audit Preparations for FINOPs

Audit Preparations for FINOPs

For a broker dealer, there’s a single word that is synonymous with death and taxes….Audit. Every broker dealer needs to be prepared for audits. Whether it is the annual independent audit or a regulatory audit, audits will happen. Your broker dealer’s Financial and Operations Principal (“FINOP”) plays a vital role in ensuring compliance with regulatory requirements and maintaining accurate financial records. There are several considerations for your broker dealer’s FINOP as it pertains to audits. Review Regulatory Requirements: A FINOP should do a thorough review of the regulatory requirements that are applicable to your broker dealer. This includes requirements as Read more about Audit Preparations for FINOPs[…]

FINRA Audit Preparation

FINRA Audit Preparation

For the broker dealer, there are a few things that are certain in life, and one of those happens to be Financial Industry Regulatory Authority (“FINRA”) audits. No broker dealer wants to get a FINRA examination call. However, there are multiple ways that a broker dealer can be prepared for their firm’s FINRA exam. The most important thing a broker dealer can have in place is a solid compliance program. This includes but is not limited to: Knowing where your broker dealer’s books and records are stored and how to easily access said files Being able to clearly explain your Read more about FINRA Audit Preparation[…]

Annual Audit Season

Annual Audit Season

When a broker dealer hears the words “annual audit season”, it can feel like the initial effects of hay fever or pollen season hitting you smack in the face. It is not fun. You may break out in sweats, have night terrors, or worse yet, not have a great understanding of the necessity of an annual audit. Two of the most important aspects of annual audit season are as follows: having a great financial bookkeeper and having communicative Financial Operations Principal (FINOP). With these two professionals in your corner, your broker dealer should be able to rest easy during this Read more about Annual Audit Season[…]

AML and Branch Audits

AML and Branch Audits in the Time of COVID-19

At the beginning of the year, FINRA released important updates related to supervision requirements for broker-dealers. As broker-dealers and their employees started experiencing various work-from-home, virtual meeting, and operations challenges, FINRA provided valuable guidance for the transition in a FAQ related to the coronavirus pandemic. Below are a few items where FINRA has provided areas of relief related to AML and Branch audits. AML Independent Testing FINRA Rule 3310, Anti-Money Laundering (“AML”) Compliance Program, requires firms to perform independent testing of their AML program every calendar year. If a member firm neither executes transactions for customers, holds customer accounts, nor Read more about AML and Branch Audits in the Time of COVID-19[…]

FINRA Conference Call Part 2

Highlights from FINRA Small Firm Conference Call: Part 2

Earlier this month, FINRA hosted a Small Firm Conference Call to discuss updates and implications of COVID-19 (Coronavirus). If you were not able to listen to the call live, a replay recording is available on demand. This recording provides and discusses many highlights noted in the FAQs Related to Coronavirus Pandemic.

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Annual Compliance

Annual Compliance Requirements: Year-End Priorities

It’s that time of the year again! As the fourth quarter ticks by, we have compiled a helpful end of year to-do list to aid small broker-dealers in addressing and closing out important annual compliance requirements.

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