The Use Of A Professional
Consultant Oftentimes Allows You To Complete The Finra(Nasd) Broker-Dealer
In An Efficient Way
Registration as a Broker Dealer ("B/D") takes about 90 days -- if the necessary
exams have been completed and the firm is adequately capitalized.
Paperwork is filed with FINRA, each state in which
the firm conducts its business, and with the SEC. "FINRA" is Financial Industry
Regulatory Authority and "SEC" is the Securities and Exchange Commission.
Here are some of the reasons to use a Professional Consultant:
PRIOR to filing an application you must consider:
What type of entity will the firm choose to be?
Corporation, Partnership, LLC?
What type of broker-dealer operation will the
Full-service Broker Dealer with all general
Limited Broker Dealer selling:
mutual funds -- limited partnerships --
Will the firm maintain a "clearing" or "fully
disclosed" agreement with another firm?
What types of securities registrations will the
broker-dealer personnel be required to maintain?
Will the firm be required to employ a Financial
and Operations Principal?
What are the minimum net capital requirements?
…And many other strategic decisions …
Some of the key steps in setting up a B/D are:
- Receive, complete, and send your application to FINRA
- Have your application assigned to an examiner in the FINRA District
- Provide additional support to the examiner
- Create a Business Plan
- Pass the appropriate FINRA exams. These generally include:
- Series 7 Exam -- General Securities Representative
- Series 24 Exam -- General Securities Registered Principal
- Series 27 Exam -- Financial Operations Principal
- Series 63 Exam -- Uniform State Laws
- Attend a Pre-Membership Interview ("PMI")
- Respond to a Voluntary Restriction Letter
- Director Review
- District Conduct Committee Review
- File with State Securities Commissioners
Make sure your application moves as swiftly and easily as possible
through the registration process.
Sometimes B/Ds are available for purchase. You may want to review