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), 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 establishedSB Game Hacker Apk 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…
[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.
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.
What do you do when you add a new product to your firm’s approved offering listing? How do your reps know that a new product has been added? Do your policies & procedures even address new products? What sort of training do you provide? Does your firm need to file a Continuing Membership Application (Form CMA)? As a compliance specialist for FINRA-registered broker-dealers, we encounter these type of questions from our clients on a regular basis, including FINRA, SEC, and MSRB compliance veterans.
The question of who is required to have an active FINRA Series 24 (General Securities Principal) registration is often not as easy to answer as you may think. As a broker-dealer compliance consulting specialist, we encounter this question from seasoned FINRA compliance veterans and new broker-dealers alike.
On May 11, 2016, the Financial Crimes Enforcement Network (FinCEN) issued its final rules to strengthen the customer due diligence requirements for covered financial institutions. Broker-dealers are deemed a “covered financial institution” and therefore must comply with the new rules, which includes a requirement to verify the identity of certain beneficial owners of legal entity customers (for example, corporations, partnerships, trusts). This beneficial ownership requirement, as it is called, becomes effective May 11, 2018. We provide an overview of the new requirement through a series of Questions & Answers (Q&As). Read More…
Initially, when a firm receives FINRA approval to become a broker/dealer, the membership agreement has specific criteria which defines the types of business the firm may engage. If the firm wants to make changes to certain lines of business, operations, or otherwise, then it must submit a CMA, also known as the Continuing Membership Application, to obtain FINRA approval.