Ethical Considerations for FINOP’s

Ethical Considerations for FINOP’s

Ethical Considerations for FINOP’s In the financial services industry, the Financial and Operations Principal (“FINOP”) plays a critical role in establishing and maintaining the integrity and efficiency of a broker dealer. Because of this, the FINOP has a significant ethical obligation that must be carefully navigated to ensure that fairness, integrity, and lawful practices are at the forefront of their position. Below are several key considerations for Financial and Operations Principals (“FINOPS”) to implement as part of their best practices with their broker dealer firms. Accuracy and Integrity of Financial Reporting – FINOPS are responsible for certifying accurate and transparent Read more about Ethical Considerations for FINOP’s[…]

Compliance Challenges for FINOPs

Compliance Challenges for FINOPs

In today’s ever-evolving broker dealer environment, a Financial and Operations Principal (“FINOP”) plays a vital role in ensuring the compliance and financial integrity of the broker dealer(s) that he/she is registered with. Due to constant changes within the regulatory landscape, FINOPs encounter numerous compliance challenges that demand their attention and expertise, and as a result, a FINOP must have the knowledge and experience to suggest strategies to the broker dealer to help effectively address these challenges. Below are a few common compliance challenges that FINOPs face along with strategies to help address them: – Regulatory Complexity: Broker dealers operate in Read more about Compliance Challenges for FINOPs[…]

It has been an exciting year for Securities Compliance Management (“SCM”)

The Ultimate Solution for Compliance Management

It has been an exciting year for Securities Compliance Management (“SCM”). The Firm has successfully: Initiated numerous New Membership Applications (“NMAs”) for new firms seeking the Financial Industry Regulatory Authority’s (“FINRA”) approval, Initiated several Continuous Membership Applications (“CMAs”) for existing firms that are planning to undergo a material change in their line of business operations, Partnered with new broker-dealer and registered investment advisor firms to assist them with their FinOp and/or compliance programs, and Assisted in the buy/sell of existing broker-dealer firms. Along with the new relationships that Securities Compliance Management has established this year, the Firm is also incredibly Read more about The Ultimate Solution for Compliance Management[…]

Form CRS Observations

Form CRS Observations

Broker dealers, specifically the Chief Compliance Officer (“CCO”), are required to review their firm’s compliance programs and procedures at least annually to ensure that all compliance areas are working in accordance with the rules and regulations set forth by the Securities and Exchange Commission (“SEC”) and the Financial Industry Regulatory Authority (“FINRA”). Per the Securities Exchange Act of 1934 under rule 17a-14, one area of review for broker dealers who maintain retail clients is Form CRS, the customer relationship summary. Form CRS contains various information regarding the broker dealer that is important for retail clients to know. Over the past Read more about Form CRS Observations[…]

Three Main Focal Points of Newly Registered Firms

Exam Observations for New Firms

In March 2023, the Securities and Exchange Commission (“SEC”) released an alert article with some observations that they have seen when examining newly registered firms. Note that these alerts are not rules or regulations of any regulatory authority. However, investment advisory firms and broker dealers can garner many important takeaways that may assist the firm during an examination. It is important for any new firm – whether broker dealer or registered investment advisor – to start communicating and engaging with its regulatory contacts. Having an open line of communication can provide value to investment advisors and/or broker dealers in building Read more about Exam Observations for New Firms[…]

The role of a Chief Compliance Officer

The Chief Compliance Officer

As with all career choices, there are some vital pieces of information that are not included in the textbooks. Being a Chief Compliance Officer (“CCO”) is no exception to this rule. There are simply aspects of the position where life experience becomes the CCO’s guidebook. A thorough Chief Compliance Officer within a broker dealer (“BD”) is not every employee’s favorite person. Holding all employees to the strict processes and procedures set forth for the broker dealer can sometimes feel like a full-time job in itself. Being a CCO can be a thankless position, but the rewards can also be great. Read more about The Chief Compliance Officer[…]