The Outsourced FINOP

Running a broker dealer is an expensive task these days – more regulations, hyper focus on transparency in the books and records, and studying all potential fraud risks within broker dealers. Cutting costs can seem like a daunting feat for anyone. One of the easiest ways to manage your broker dealer without breaking the bank is outsourcing your FINOP and accounting roles. To hire the best inhouse FINOP, a broker dealer will require at least an industry experienced accountant/financial officer along with a Series 27/28 licensed FINOP. In addition to salaries, the broker dealer must have benefits in order attract Read more about The Outsourced FINOP[…]

Fidelity Bond Requirements (FINRA Rule 4360)

Fidelity Bond Requirements (FINRA Rule 4360)

FINRA Rule 4360 requires each member firm to join the Securities Investor Protection Corporation (SIPC) and to secure fidelity bonding insurance with specified amounts of coverage based on the firm’s net capital requirement. Such firms must maintain fidelity bond coverage that provides for per loss coverage without an aggregate limit of liability. Firms may apply for this level of coverage with any product that meets these requirements, including the Securities Dealer Blanket Bond (SDBB) or a properly endorsed Financial Institution Form 14 Bond (Form 14). Net Capital Requirements The rule requires a member with a net capital requirement of less Read more about Fidelity Bond Requirements (FINRA Rule 4360)[…]