Broker Dealer Exchange

As the regulatory landscape has changed, Broker Dealer Exchange has become increasingly common. As a function of working closely with owners of nearly 100 broker dealers, ACI is often well positioned to match potential buyers and sellers for a transaction.  We can further assist existing broker dealers with securing compensation for the sale of their asset while also assisting potential buyers with minimizing their barrier to entry as a member firm.

Transaction based compensation has also become increasingly common, especially with the growth of the hedge fund and private equity industries.  Individuals are often assisting in the capital raising process, for which they need to be registered if their compensation is tied to capital raised. In order to receive transaction based compensation, it is a requirement to be a member of the Financial Industry Regulatory Authority (FINRA).  The New Member Application process, known as Form NMA, typically takes about 6 months for formal approval.  However, in many cases, potential candidates for membership cannot wait to conduct time-sensitive transactions.  The result of this has been the development of a secondary market for the purchase and sale of broker dealers.

In certain instances, existing members who no longer conduct business will choose to sell their broker dealer to individuals who are looking to become members.  This change of ownership must go through FINRA approval, known as a Continuing Member Application (Form CMA), but will often allow business to commence during the approval process as long as there is proper supervision of such activities.

We encourage any firm or individual who may be interested in a broker dealer transaction to contact us for further details on the process.

Give us a call at 212-668-8700, or follow the contact form link below to learn more.