We are focused on full-service bookkeeping, accounting, Series 27 FinOp licensing, and submissions of regulatory filings for broker dealer members.
Our highly qualified experts will assist your firm in minimizing costs while ensuring ongoing regulatory compliance.
FINRA Rule 1022 requires the designation of a Financial and Operational Principal (FinOp) for all broker dealer member firms. It is critical to engage a highly qualified expert who is intimately familiar with the regulations and best practices of how to remain compliant. See how ACI is leading the field.
Regulatory financial bookkeeping has become a driving factor in the ability of ACI to properly service the broker dealer community. Our ability to centralize all accounting functions provides our FinOps with the ability to manage the regulatory reporting for our clients and assist in ensuring capital compliance.
SEC Rule 17a-5 requires every broker dealer to submit the Financial and Operational Combined Uniform Single Report (FOCUS Report) within 17 business days of month end. ACI handles the compilation, review, and filing of these reports for our clients.
FINRA requires every broker dealer to maintain a minimum amount of net capital on a moment-to-moment basis. It is the FinOp’s responsibility to compute net capital and provide guidance on how maintain compliance.
Accurate financial statement preparation is a necessity for broker dealers to properly maintain books and records and ensure the accurate computation of net capital. At ACI, we facilitate the preparation of monthly reports to mitigate regulatory exposure and to provide our clients with the tools needed to make well-informed business decisions.
FINRA regulated broker dealers must file the quarterly Supplemental Schedules of Income (SSOI) as an extension of the income statement included on the FOCUS Report filing. ACI has developed a system whereby each account within the chart of accounts is properly correlated with the SSOI categories established by FINRA. This expedites the completion and submission of the SSOI reports on behalf of our clients.
On a quarterly basis, all registered broker dealers must file Form Custody. This form is utilized to identify if the firm has taken possession of customer funds. While the possession of customer funds may not be applicable to many broker dealers, Form Custody filing is still required. ACI facilitates the associated filings.
Cash flow management is a critical component in the success of any entity. The reconciliation of cash is particularly important at a broker dealer, where regulators often review the financial statements for accuracy. ACI exercises care in reconciling bank accounts on a monthly basis. Online access to statements ensures we keep bank activity up to date and allows us to provide accurate cash balances to our clients at all times.
Introducing broker dealers often receive brokerage, or clearing firm, statements on a monthly basis. These reports typically detail the revenues generated and clearing expenses incurred. ACI will analyze and reconcile these statements for regulatory reporting purposes.
Every six months each broker dealer member firm is required to compute their SIPC assessment based on a modified calculation of profit and loss, and submit to SIPC along with any balance due. At ACI, we facilitate both the computation and submission of the SIPC forms.
The independently certified annual audit has become a requirement for all broker dealers who conduct business with the investing public. ACI works closely with many audit firms and will act as a liaison for our clients during this process, providing the required documentation including financial statements, regulatory reports, and third party verification statements.
Designating Examining authorities, such as FINRA, often make inquiries and conduct cycle examinations to review compliance with applicable rules and regulations. ACI acts as the liaison to provide regulators with the necessary transparency required to mitigate regulatory exposure.
Occasionally there is a need for the review of books and records to ensure accuracy in financial reporting. This occurs most commonly during the purchase/sale of a member firm. ACI frequently assists potential purchasers with accounting due diligence.
In order to receive any form of transaction based compensation related to securities, it is a requirement to apply for and be granted membership as a FINRA-registered broker-dealer. ACI works closely with legal and compliance firms during this process. Our role is to provide the FinOp license, the 12 month pro-forma financial statements and preliminary net capital computations prior to the FINRA pre-membership interview meeting.
Broker dealers are required to comply with Internal Revenue Service (IRS) filing obligations, as well as FINRA obligations. As an extension of our function as the preparer of the financial statements and regulatory filings, ACI handles the entity and individual tax filings for many of our broker dealer clients and their owners.
As a function of working closely with the owners of many broker dealers, ACI is often well positioned to assist in matching potential buyers and sellers. If you are interested in buying or selling a broker dealer please feel welcome to reach out.
ACI strongly understands the close relationship between compliance and accounting at any broker dealer. By virtue of working with hundreds of broker dealers throughout our history, we have been able to partner with some of the leading compliance consulting firms in the industry.