Broker/Dealer Startup

If you have determined that you are ready to start your own broker/dealer, then our compliance experts can make the process a painless as possible. Broker/dealer start-ups require an intense amount of effort and personnel. The lengthy registration process and course of hurdles make the set-up of a broker/dealer laborious and time-consuming. Our experts have set up numerous broker/dealers, expediting the start-up process tremendously. Our team has the experience, expertise and vast industry contacts needed for setting up a successful broker/dealer.

Our goal at Securities Compliance Management is to provide services based on each client’s needs. For example, some clients want us to do all the behind-the-scenes work. Others wish to have us manage the process and allow their team to contribute towards the work product. Either way, we can help you reach your final goal in accordance with your budget.

Timing is everything. Upon application submission, FINRA has 30-days to respond to the broker/dealer application with questions. Once a response is issued, the applicant has 60-days to respond. In order to keep the process moving, we strive to provide a response as quick as possible to FINRA.. FINRA then has another 30-days to respond. Once this second response is issued, the applicant has 30-days to respond It is common at this point to schedule a membership interview; however, there may be circumstances that warrant a third response letter, which again follows the 30-day FINRA and applicant response windows. Once a membership interview is conducted, FINRA will ideally approve the broker/dealer within 30-days from this date. Based on our experiences, the process can take 4 months to 6 months . It is important to note that FINRA is obligated to issue final order not later than 6 months following application submission.

Here is a look at some of the details and work required to start a new broker/dealer:

  • Initial Consultation
  • Assignment of Principal Registrations and Executive Positions
  • Name Reservation
  • CRD and Form NMA Entitlement
  • Preparation of the Form BD
  • Corporate Structure and Documents
  • Capital Funding and establishment of accounting systems
  • Completion of Form NMA Process
  • Construction of your business plan
  • Application for FINS#
  • Completion of Form U4’s
  • Construction of a Written Supervisory Procedures Manual to satisfy FINRA membership checklist
  • State registration assessment and applications
  • Help determine which licenses, if any, your representatives will need
  • Application for Fidelity bond
  • Establishment of an Anti-Money Laundering Compliance Program
  • Establishment of a Customer Identification Program
  • Business Continuity Planning
  • Registration with Lost and Stolen Securities Program
  • Deal with all follow-ups with FINRA once forms are submitted
  • Preparation for FINRA membership interview