Risk Monitoring Archives - MasterCompliance

Becoming a Registered Broker Dealer

Posted on May 18, 2023 by SCM Communications

When a firm makes the decision to become a registered broker dealer with the Financial Industry Regulatory Authority (“FINRA”), the feelings that follow can be quite overwhelming. Unless one has much experience in the FINRA world, it can be a scary step and possibly intimidating. The mission of FINRA is to work with a broker dealer to ensure investor protection, market integrity, and confirm that the broker dealer’s practices and programs are in compliance with the industry’s rules and regulations. The FINRA institution desires that every broker dealer is successful in mitigating risk for the client and in turn becomes Read more about Becoming a Registered Broker Dealer[…]

Carrying Agreements

Posted on December 31, 2021December 30, 2021 by admin

Most broker-dealers rely on another member firm to provide clearing, custody, and execution services. Where needed, a carrying firm may provide prime brokerage, exception reports, stock lending and borrowing, financing margin, risk monitoring, direct market access (DMA), and much more. In short, an introducing firm outsources many important jobs. By allowing other firms to perform these critical functions, a fully disclosed introducing firm can focus on its core activities while its clearing firm may look to providing its clients with good service, economies of scale, and expertise in technology. All carrying agreements between an introducing firm and its carrying agent Read more about Carrying Agreements[…]

Examination and Risk Monitoring: What to Expect in 2020

Posted on March 11, 2020 by SCM Communications

FINRA recently released a podcast called “What to Expect: The 2020 Exam and Risk Monitoring Program“. It provides a wealth of information from three members of the Member Supervision Senior Leadership on what to expect from the Examination and Risk Monitoring program in 2020. Here are a few highlights from the podcast. Read More…