Is a Series 24 Required to Own a BD?

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.

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beneficial ownership

Beneficial Ownership Requirements for Legal Entity Customers

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…

continuing membership application

Continuing Membership Application

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.

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