The Situation
In coming to us with help for the New Member Application (NMA) Process with FINRA, it was determined that in addition to assistance with the NMA, the firm needed a resource for the FINOP position.
The FINRA registration applications are processed by the MAP division of FINRA. Prospective FINRA member firms must seek approval for new FINRA membership through the submission of a New Membership Application (NMA or Form NMA) in accordance with FINRA Rule 1013.
Firms applying for FINRA membership, with the exception of sole proprietorships, must have at least two registered principals and one Financial and Operations Principal (FINOP). To qualify as a firm’s FINOP, individuals must pass FINRA’s Series 27 or Series 28 qualification examination.
However, not all registered FINOPs have the appropriate experience to do the job effectively. The regulatory rules for broker-dealers are complex. FINOPs must have, in addition to the Series 27 license, enough experience in the industry and knowledge of the inner workings of the firm to understand the nuances and interpretations regulators are expecting.
The firm did not have a qualified FINOP in place and decided to outsource a licensed, experienced FINOP from Oyster Consulting.
