A: The amount of time it takes to get a new broker/dealer approved by FINRA varies considerably. FINRA is permitted by rule to take up to 180 days to approve an applicant from the date of the initial submission. At BDCA, we strive to complete the initial application that is submitted to FINRA as quickly as possible. Generally, we can have a new broker/dealer approved by FINRA in significantly less time than the 180 days that FINRA is allowed by rule.
Many factors affect the amount of time required for FINRA approval process, including whether the client is responsive, motivated and organized. We rely on you, the client, to provide us with information we need for the application quickly and accurately so we can get your new broker/dealer up and running as quickly as possible. Other factors that affect the amount of time required for FINRA approval are whether any of the owners or principals have a disciplinary history and also the FINRA District Office in which the application is filed. Some FINRA District Offices process new member applications more quickly than others.
Regardless of the particular circumstances surrounding your situation, the consultants at BDCA are experienced at getting your new broker/dealer approved with FINRA in the shortest amount of time possible. Please call us at (770) 263-6003 to discuss starting a new broker/dealer.
Q: How much will it cost to start my own broker/dealer?
A: The cost to start a new broker/dealer can vary a great deal depending on several factors. The type of broker/dealer you want to have, the kinds of securities you want to offer, the number of registered representatives and branches you will have and the number of states in which the broker/dealer is registered will affect the cost to start a broker/dealer.
Please use our B/D Start-Up Cost Estimator to get an estimate of the costs and fees involved with starting a new broker/dealer.
Q: I currently work for another brokerage firm and I don’t want them to find out I am starting my own broker/dealer. Is this possible?
A: This is a difficult question to answer, but at some point during the application process, you will have to file a U-4 with the new broker/dealer. When you file a U-4 with the new broker/dealer, it is possible that your current firm will find out that you have registered with another firm. Please call BDCA at (770) 263-6003 to speak with one of our experienced consultants to find out more about this delicate topic.
Q: Do I have to be securities licensed to own a broker/dealer?
A: This is another difficult question to answer without the specific details of a particular situation. However, if you will be actively engaged in the day-to-day management of the broker/dealer or you will be an officer, partner or director of the new broker/dealer, you will most likely have to become registered as a principal.
Regardless of whether you become registered as a principal, it is important to remember that FINRA has a two principal requirement for all broker/dealers, with limited exceptions. You will also have to have a Financial and Operations Principal and if you plan to offer municipal securities or options, you will also need to have a Municipal Securities Principal and/or an Options Principal.
Please call BDCA at (770) 263-6003 to discuss specific registration requirements for your particular situation with one of our consultants.
Q: My U-4 has some “yes” answers on it. Will I still be able to start my own broker/dealer?
A: This is largely dependent upon the nature of the incidents that generated the “yes” answers on your U-4. In many cases, if the “yes” answers on your U-4 were related to incidents that occurred quite some time ago or are related to minor rule violations, you probably are a good candidate to be approved for ownership of a new broker/dealer by FINRA. Please call us at (770) 263-6003 to discuss confidentially with a consultant the particular circumstances around the “yes” answers on your U-4 to find out how they may affect your chances for FINRA approval.
Q: I started the FINRA registration process on my own and now realize that I need some help to finish the process. Can BDCA help me finish the process?
A: This problem is more common than you might think. The application process to become a new FINRA member firm is extremely time consuming and burdensome. Many people do not realize just how time consuming or burdensome the task is until they try to do it themselves. At BDCA, we are ready and able to help you at any stage of the application process. Please call us at (770) 263-6003 to get a detailed quote based on your specific needs.