Broker/Dealer Registration

Our turnkey membership & registration solutions provide a one-stop shop for your firm’s broker/dealer registration. Our system includes preparation of your firm’s Written Supervisory Procedures (WSPs) Manual, Continuing Education Training Plan, Business Continuity Plan and development of all FINRA, SEC and state forms.

What will be REQUIRED?

When registering as a new broker/dealer, you must submit successful applications to the FINRA, the SEC, and the Home State. This process can be confusing and complicated. B/D Compliance Associates, Inc. assists the applicant firm in making an efficient and complete application to all three agencies.

The FINRA application is the most arduous. Some of the many areas FINRA will scrutinize (Reference FINRA Rule 1013):

• Types of Business: It will be necessary to prepare a short business plan.
• Personnel: Who are the owners/managers? Do they have the necessary experience and FINRA licenses? FINRA Rules require every broker/dealer to have at least two (2) principals, generally holding Series 24 General Securities Principal qualifications. Also, the applicant will need a Financial & Operations Principal (Series 27 or Series 28). In some instances, B/D Compliance Associates, Inc. can provide a qualified principal on a part-time basis to serve in a principal capacity.
• Capital: What is the amount and source of the firm’s capital? Requirements range from $5,000 to over $250,000.
• Clearing Arrangements: Unless the firm will self-clear, which clearing firm will the applicant utilize and on what terms?
• Facilities: WWill the firm have the necessary space and equipment?

What will it COST?

The cost fee to set up a new broker/dealer can be expensive if you do not know what you are doing. Law firms provide consultative work for ’33 Act issues, and their hourly rates can be excessive as they attempt to understand the complexities of a successful application under the ’34 Act and FINRA rules. You want to hire someone who has years of experience setting up new broker/dealers and who will do so for a fixed cost. In addition to our consultative fee, you will need to consider other expenses such as clearing fees, state and FINRA registration fees, annual independent financial audit fees and other expenses. FINRA requires each applicant also to have sufficient capital to cover 6-12 months of fixed expenses.

How LONG will it take?

FINRA has 180 days from the date of receipt of an application to render a decision. With B/D Compliance Associates leading the project, FINRA has approved Membership Applications in as few as 90 days.*
For more information about services, visit our Services page.

*Results are not typical, and require the applicant firm to have appropriate supervisory principals on staff at the time of the initial application. Other factors may significantly affect your company’s actual application timeline.