#Dealer principal definition how to#
#Dealer principal definition full#
#Dealer principal definition series#

Question: What level of net capital is required for a firm to participate in a firm commitment underwriting? If your firm conducts more than ten transactions in a calendar year in a proprietary account, it is required to maintain a minimum of $100,000 in net capital. Question: How many transactions may my firm execute in a proprietary account? The thirty day period begins at the end of the calendar month in which the commission is earned. Question: When does the thirty day period to determine if commissions receivable are aged begin? Any amount in a clearing deposit account in excess of the required amount is treated as non-allowable. Only the amount that is required to be on deposit with the clearing firm is an allowable asset. Question: Is my firm’s entire clearing deposit an allowable asset? The issue is not whether the FINOP is off-site, but whether adequate controls are in place to ensure accurate books and records and timely financial reporting. The FINOP, however, even if located off-site, is ultimately responsible for the broker/dealer’s books and records. Outsourcing FINOP work not only satisfies regulatory requirements, but often makes more sense for many broker/dealers. Any broker/dealer may hire an off-site FINOP. Question: Is there any rule or regulation that prohibits a broker/dealer from outsourcing FINOP services?

#Dealer principal definition full#

Within 90 calendar days following the change in duties that requires registration as a principal, the registered representative must pass the appropriate principal qualification exam.Ī final option to consider if the need arises to replace your FINOP is hiring someone outside the firm as a full time, on-site FINOP. FINRA rules permit a firm to change the responsibilities of a registered representative to those that require registration as a principal.

#Dealer principal definition how to#

This allows them to better understand the balance between the retail demands a brokerage firm faces and the regulatory requirements imposed by the various SRO’s and government agencies.Īnother alternative to consider when choosing how to replace your FINOP is to appoint someone who is already registered with your firm as the new FINOP. RND Resources has staff members with many years of experience on both the retail and regulatory sides of the industry. They have the knowledge and expertise to help guide your firm through today’s complex regulatory environment. The Financial and Operations Principals at RND Resources specialize in the finance and accounting issues encountered specifically by brokerage firms. RND Resources has a staff of experienced Financial and Operations Principals able to act as your firm’s FINOP on an interim or on a permanent basis. The easiest, most cost effective way to solve the problem of replacing your FINOP is to call RND Resources, Inc. This task can be accomplished in a few different ways. The immediate task at hand is to find a replacement for your FINOP. Question: My firm’s FINOP has just resigned. Question: When is my firm’s annual audit due?Įach firm’s independent annual audit is due within 60 days of the end of its fiscal year.

#Dealer principal definition series#

A Series 27 FINOP satisfies the requirements for any firm. Any firm operating pursuant to the $50,000 minimum net capital requirement or lower may have a Series 28 FINOP. The Series 28 registration qualifies an individual as a “Limited Principal-Introducing Broker/Dealer Financial and Operations”, see NASD rule 1022 for details.Īny firm operating pursuant to the $100,000 minimum net capital requirement or higher must have a Series 27 FINOP. The Series 27 registration qualifies an individual as a “Limited Principal-Financial and Operations”. There are two FINRA registrations that allow an individual to act as a Financial and Operations Principal (FINOP), the Series 27 and Series 28. Question: Does my firm need a Series 27 or a Series 28 FINOP? What is the difference between a FOCUS Report Part I and a FOCUS Report Part II/IIA?.What should you do if your firm’s net capital falls below 120% of the required minimum?.How can the amount of aggregate indebtedness my firm carries affect our minimum net capital?.What level of net capital is required for a firm to participate in a firm commitment underwriting?.How many transactions may my firm execute in a proprietary account?.When does the thirty day period to determine if commissions receivable are aged begin?.Is my firm’s entire clearing deposit an allowable asset?.

Is there any rule or regulation that prohibits a broker/dealer from outsourcing FINOP services?.

Does my firm need a Series 27 or a Series 28 FINOP?.

Frequently Asked Questions – FinOps | Financial and Operations Principal FREQUENTLY ASKED QUESTIONS