Due Diligence for Broker Dealers

FINRA 2360 (16)(b) and FINRA 2370(16)(b) specify that before approving a customer’s account for trading, due diligence must be exercised to obtain controls for the transaction in order to assure transparency of business practices and provide quality assurance before entering into a transaction.  Counter-party risk is one of the top items under review by the regulators. 

ACI works with our clients help them understand the areas in which they must conduct due diligence and to manage due diligence reviews in key business areas, including but not limited to:

• Conducting due diligence reviews of outside investment managers, customers, partners, and potential transactions to seek information including investment objectives, employment status, annual income and net worth, and investment experience.

• Developing processes to obtain sufficient customer account records that include information such as customer financial information, discretionary authorization agreement, disclosure documentation, account approval information, etc.

• Examining existing compliance programs, risk management processes, and internal controls to identify deficiencies.

• Providing a due diligence checklist.

• Requesting required documents including financial information and business plans for review

To inquire into ACI's Due Diligence services, contact us at info@acisecure.com.