Your firm’s FinOP “Financial and Operations Principal” should be able to do more than file FOCUS reports. Outsourced FINOP role should be assigned to a financial expert in the broker-dealer industry with comprehensive accounting expertise. They usually hold a Series 27 license, as well as several other series principal licenses, and have the requisite expertise for financial brokerage firms.
They can be your representative to fulfill various financial management and regulatory compliance-related roles including; FinOp, Chief Financial Officer, and Chief Compliance Officer. They offer a complete suite of FinOp services that can be customized to meet your firm's needs.
Their services are scale-able and vertically integrated to meet the goals of business planning, compliance, operations, trading, and registration.
Broker-Dealer Outsourced FINOP Services Include: registration as FinOp using the series 27 license – Financial and Operations Principal, FOCUS Report – net capital computations and compliance, a supplemental statement of other income, SSOI form custody reports, SIPC 6 & SIPC 7 filings – SIPC annual and semi-annual reporting, focus schedule I and non-allowable Asset Schedule.
They act as primary contact for regulator inquiries regarding financial reporting. The FinOP must qualify by passing the Series 27/28 exam before their registration is effective. They are not required to be a Certified Public Accountant, however, CPA certification is crucial to being a successful Financial Operations Principal given the many risks, complexities, and constant changes in the regulatory environment.
A licensed CPA with expertise in securities is well-equipped to handle regulatory accounting requirements, financial reporting, and meet with FINRA regulators as necessary which are all important responsibilities of the FinOp. The cost of hiring a qualified salaried FinOp is growing at a fast pace as firms compete for a limited number of suitable candidates with the necessary knowledge and expertise.
Small and mid-sized firms bear the greatest burden because they cannot afford salaries and opportunities offered by larger organizations. However, while the salaries of FinOp are increasing, the work involved in handling FinOp responsibilities is often still part-time for most small to mid-sized firms.
Small and mid-sized firms bear the greatest burden because they cannot afford salaries and opportunities offered by larger organizations. However, while the salaries of FinOp are increasing, the work involved in handling FinOp responsibilities is often still part-time for most small to mid-sized firms.
Firms such as BD Consulting Associates can provide all the benefits of a qualified and experienced FinOp for less than the overhead cost of hiring a senior-level employee. When weighing all the factors, Outsourced FINOP is a good strategy because it allows your firm to concentrate on building client accounts and adding new services, while financial responsibilities are kept in check.
Outsourcing to a compliance support firm staffed with an industry CPA who has expertise in brokerage and regulatory compliance is an added bonus that provides your firm a relationship with veteran risk management and professional compliance solutions.
