As well as accountable for the truthfulness of the financial statements, agreement with applicable net capital rules, and the timely compliance of all financial regulatory reports. After passing the Series 27 to 28 examination, the FINRA member firm designates one individual to serve as a Financial and Operational Principal. The FINOP becomes personally accountable for the maintenance of the broker dealer’s books and records.

FINOP Responsibilities

There are some of the responsibilities of FINOP are as follows:

  • Preservation of books and keeping of accurate records
  • Financial regulatory reporting and Customer protection
  • Net capital insight and project future movement


What Makes a Strong FINOP?

Background and experience working as a FINOP in a broker-dealer make it strong and trustworthy.  These financial responsibilities include customer protection rule, the net capital rule, reporting rules, etc. The financial responsibility rules require a lot of information about the firm as well as the ability to see the big picture of things. You will not be able to cover every minor detail until you don’t understand an entire business or firm. Having a degree and the Series license does not make a strong FINOP unless they have the experience to go with it.

Confirming Proper Documentation: If you’re going to fulfill the financial responsibility rules, you must be able to document that you’ve performed the appropriate procedures.

Custody of the Firm’s Books and Records: The FINOP is responsible for confirming that the firm is maintaining the right books and records perfectly.

Asking questions: The FINOP should always keep a check by looking out for things. It should be asking and looking at what is happening and how is happening. Should be up to date by asking a question and reviewing things.

Staying current: A strong FINOP keeps in touch with industry leaders and regulators. It’s easy to get into the trap of thinking if your FINOP is not up to dating by reading or attending conferences or talking to other people.

FINRA Registration


Both individuals and firms must be registered with FINRA to conduct securities dealings and business with the financing public. To attain FINRA Broker-Dealer registration, firms and individuals need to meet certain membership standards. To gain registration, securities professionals are required to pass qualification exams to prove competence in a specific area.

Broker-Dealers: You can find FINRA’s membership requirements for Broker-Dealers (BD) firms, which outline the ethics and technical guidelines for the BD membership application and registration process.

Capital Acquisition Brokers: Capital acquisition brokers engage in a restricted choice of activities.  Learn to capital acquisition brokers’ status about transitioning and registering

Individual Registration: Before taking a qualification exam, firms must register any person engaged in the securities business of the firm. These persons could be branch managers, salespersons, partners, department supervisors, directors, and officers.

How to start a Broker Dealer

Starting a Broker-Dealer Firm

Some people want to know how to start a Broker-Dealer. Here are some steps that are followed by starting a Broker-Dealer firm.

Plan your business: A clear plan is important for success as a businessperson. It will help you point out the specifics of your business and discover some unknowns. A few important topics that need to consider are a startup and ongoing costs, target market and name of your business, etc.

Form a Legal Entity: Sole Proprietorship, Limited Liability Company, Partnership, and Corporation are the most common business structure types.

Register for Taxes: Before you can open for business, you will need to register for a variety of federal and state taxes.

Open a Business Bank Account & Credit Card: Needs to open a business bank account, using a personal account is not safe. Dedicated business banking and credit accounts are essential for personal asset protection.

Obtain Necessary Permits and Licenses: Failure to obtain necessary licenses can result in heavy fines. Even cause your business to be shut down.

Getting business insurance, defining your brand, creating your business website. And setting up your business phone system are also some of the last steps.

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