Legal Counsel and Services for Broker-Dealer Entities

Broker-dealers must meet a slew of regulatory requirements, each of which presents its own set of challenges. For instance, what procedures should be followed for social networking diligence and supervision? What are the current cash versus non-cash compensation rules, and what can and cannot be paid for? How should suitability and legitimate concerns be evaluated before a new product is made available? You should consider seeking guidance from FINRA arbitration experts or professional advisors to provide direction and advice. Even if you do not choose to engage external advisors, brokerage firms are generally supported by compliance and advisory professionals.

FINRA enforcement specialists at MAH Advising, LLC (“MAH”) offer guidance and services to deal with these challenges. Our professional staff provides the following ongoing broker-dealer assessment services:

Formation Services

Our compliance professionals provide broker-dealer support by assisting broker-dealers from the start of their business. We assist in the completion of new membership applications, the updating of corporate records (such as bylaws, partnership agreements, and so on), support with registration requirements as well as compliance processes for registered representatives, and the development of training programs.

Please visit our page on broker-dealer formation to learn more about our formation services.

Assessment and Compliance

Some clients want to buy a pre-existing broker-dealer shell. Others want to improve their current compliance programs. Whatever you decide, MAH can assist you with:

• FINRA broker-dealer registration
• FINRA maternity consultation
• Providing due diligence checklists and interviewing potential broker-dealer shell sellers
• Creating broker-dealer selling contracts
• Mock FINRA examinations and broker-dealer risk assessments
• Performing audits of branch offices
• Conducting independent AML audits
• Evaluating and improving the current compliance program and training efforts
• Annual testing to certify the broker-compliance dealer’s supervisory program in accordance with FINRA regulations
• Reviewing surveillance reports and creating “red flag” triggers to evaluate current surveillance efforts
• Answering regulatory inquiries and complaints
• Development and testing of the business continuity plan, anti-money laundering (AML), and Regulation S-P programs
• Compliance technology solution recommendations and implementation
• Transactions and Broker-Dealer Practices
• Assist with completing all ongoing registration forms, submitting supporting documentation, and filing with FINRA and the appropriate state offices
• Writing, reviewing, and analyzing client documents (new account forms, privacy notices, prospectus receipts, exchange disclosures, quarterly performance reports, marketing disclosures, etc.)
• Review and evaluation of sales practices (use of finders, telemarketing, marketing tools & sales desk responses)
• Making and evaluating broker-dealer selling agreements
• Evaluation of the business continuity, recovery from disaster, and succession plans
• Due diligence of third-party service providers
• Comprehensive Counselling for FINRA-Related Regulations

MAH experts, as FINRA broker-dealer regulatory specialists, are well-versed in all aspects of Financial Industry Regulatory Authority compliance (FINRA). Our compliance advisors guide clients on FINRA requirements such as:

• Advertising requirements and collateral review
• Due diligence on investments and vendors
• FINRA examinations and enforcement support
• Written supervisory procedures and controls for surveillance
• Developing and sustaining broker-dealer compliance programs
• Account forms, sales agreements, and other documents
• Form CRS and other client disclosure documents
• Cybersecurity guidance

For additional help or information related to FINRA enforcement, talk to the team of FINRA securities arbitration experts here at MAH Advising LLC. Our FINRA enforcement specialists have extensive experience in helping broker-dealers. Contact the MAH team now for professional regulatory guidance.