Special Purpose Broker Dealer In A Box™

Package Includes: Corporate Services and shell registration of a new FINRA Introducing Broker-Dealer

Package excludes FINRA new membership application filing fee of $7,500. This third party fee is paid directly to FINRA.

Corporate Services

• Assist with Broker-Dealer LLC Name

• Assign a Registered Agent

• File Articles of Organization

• Create an LLC Operating Agreement

• Obtain an EIN (Employer Identification Number)

• Register for State Taxes (If Applicable)

• Open a Business Bank Account

• Apply for Business Licenses and Permits

• Set Up Accounting and Record-Keeping Systems

Shell registration of a new broker-dealer

• Preliminary Planning

• Define Business Model: Clearly define the scope of services (e.g., full-service broker-dealer, introducing broker, proprietary trading).

• Select Key Personnel: Appoint executive officers, directors, and other key personnel, such as the Chief Compliance Officer (CCO), and Anti-Money Laundering (AML) Officer. Referral to Accounting & Compliance International (ACI) for Financial and Operations Principal (FinOp).

• Determine Entity Structure: Establish the legal structure of the firm (e.g., LLC, Corporation) and register the entity at the state level.

• Prepare Financial Projections: Develop a business plan with detailed financial projections for the first year, including anticipated revenues, expenses, and capital requirements.

• Prepare Form BD (Uniform Application for Broker-Dealer Registration)

• Complete and file Form BD with the SEC and FINRA via the Central Registration Depository (CRD) system.

• Draft a detailed Business about the firm's business model, control persons, ownership structure, and compliance programs.

• Obtain FINRA Entitlement

• Set up user accounts with FINRA’s systems, including CRD, Firm Gateway, and other regulatory systems.

• Designate an account administrator to manage FINRA-related filings.

• Complete FINRA's New Member Application (NMA) Process

• Submit Form NMA: Prepare and submit the New Member Application via FINRA’s Firm Gateway. The application will include the following:

• Form BD

• Business Plan: Outline the firm’s services, customer base, revenue model, and marketing strategies.

• Organizational Chart: Describe management and supervisory structure.

• Written Supervisory Procedures (WSPs): Develop a comprehensive WSP manual that covers key areas, including trading, customer accounts, AML procedures, advertising, and supervisory controls.

• Anti-Money Laundering (AML) Program: Submit a detailed AML compliance program, as required by FINRA Rule 3310.

• Continuing Education Plan: Develop a plan for ensuring ongoing training and education for registered representatives and principals.

• Supply all broker dealer disclosures including, but not limited to, privacy policy, terms and conditions of service, website, prior investment performance, and E-consent disclosure

• Prepare and Submit Additional Documents

• Financial Documents: Submit financial statements, demonstrating sufficient capital, including balance sheets and income statements.

• Fidelity Bond Coverage: Obtain fidelity bond insurance as required by FINRA Rule 4360, which protects against employee dishonesty and fraud.

• Policies and Procedures Manual: Document firm policies on recordkeeping, order routing, customer disclosures, and other operational areas.

• Business Continuity Plan (BCP): Provide a BCP that outlines how the firm will operate in case of a significant business disruption (required by FINRA Rule 4370).

• Designate Key Principals and Register Representatives

• Ensure key personnel (e.g., CEO, CCO, FinOp, AML Officer) take and pass the necessary FINRA exams, such as the Series 7, Series 24 (General Securities Principal), Series 27 or 28 (Financial and Operations Principal), and Series 63 (state registration).

• Submit Form U4 for each registered representative and principal to disclose personal background, employment history, and other relevant details.

• Undergo FINRA’s Interview and Review Process

• Participate in Pre-Membership Interview (PMI): FINRA staff will interview key personnel to discuss the firm’s business model, supervisory procedures, and operational structure.

• Respond to any follow-up requests or questions from FINRA regarding the application or compliance program.

• Register with the SEC

• After FINRA approval, the firm will be registered with the SEC, and the broker-dealer can officially begin operations.

• Ensure all necessary SEC filings, are prepared and submitted on a timely basis.

• Register with State Regulators (Blue Sky Laws)

• Register the broker-dealer with each state where the firm intends to conduct business, as required by state securities regulators.

• File Form U4 for representatives who will be doing business in specific states.

• Register for Fidelity Bond

• Depending on broker dealer business type, consider obtaining general liability insurance, professional liability, or other coverage to protect the LLC.

• Complete Additional Regulatory Filings

• SIPC Membership: Register with the Securities Investor Protection Corporation (SIPC) to protect customers in case of broker-dealer failure.