Most FINRA registered broker-dealers are required to employ a FinOp (Financial and Operations Principal). This requirement can be fulfilled by engaging an outsourced FinOp consultant. Below, learn about the benefits of using the third party FinOp Services ACI provides, and how ACI has become a leader in the FinOp outsourcing industry.
SERIES 27 Licensed FinOp
Much like how the CPA license serves as a qualification for public accountants, the Series 27 / 28 Financial and Operations Principal examinations qualify and license FinOp professionals. The exam substantiates that a FinOp has been sufficiently educated in broker dealer accounting, and measures the knowledge and understanding of the unique financial responsibilities, rules, and record-keeping requirements of broker-dealers.
The FinOp’s responsibilities are extensive so it is extremely important for this individual to be highly qualified and thoroughly understand the broker dealer’s business operations and the reporting needs of its management. The maintenance and supervision of books and records, accurate computation of net capital, timely filing of financial regulatory reports, and understanding customer protection are key functions of any licensed FinOp. An inability to properly perform these assigned duties may result in regulatory infractions that could be detrimental to the success of any member firm.
A FinOp’s responsibilities span the following duties:
It is critical that the FinOp obtain industry experience to successfully apply the rules defined by FINRA Rule 1022 and the subsequent FinOp related FINRA notices to meet or exceed industry best practices.
Benefits of an Outsourced FinOp
Because of the importance of the FinOp role and the vast experience required to properly comply, it is advantageous to outsource the Series 27 Licensed FinOp role to a team that is focused on the broker dealer industry. ACI can leverage our decades of accounting and broker dealer experience across multiple clients to provide industry leading service in the FinOp function.
While some firms have the financial resources to employ a full-time FinOp, most small broker dealers cannot afford to incur the cost of hiring an in-house licensed professional. FINRA understands the financial burden it may place on financial services firms to employ a full-time licensed FinOp and has subsequently permitted broker dealers to outsource this function to qualified third party candidates, like ACI.
Why Choose ACI?
Over the past 30 years, ACI has become a leader in the FinOp outsourcing industry. We have supported hundreds of broker dealers which have engaged in various types of securities transactions. This exposure to an extensive diversity of broker dealers allows ACI to offer expert guidance to our clients as they explore growth opportunities and expand into new business lines. ACI currently employs a highly qualified team of CPAs, FinOps, accountants, and bookkeepers. Our infrastructure has been intentionally designed to provide every ACI client with multiple points of contact.
While each client registers only one licensed FinOp, ACI’s staff is centralized in one office to ensure we are always working as a team, across all disciplines when required. Our FinOps encounter unique experiences with each client engagement. We are able to leverage these experiences to collectively become industry experts, with extensive resources to address any potential regulatory question that may be presented. ACI has designed strong internal controls and processes that minimize lead time and ensure our reporting exceeds FINRA’s expectations.
We take tremendous pride in client retention and strive to build longstanding and mutually-beneficial relationships. The ACI staff regularly attends industry conferences to remain current in the evolving regulatory landscape. We actively participate in discussions with regulators, auditors, and other FinOp peers on how to improve financial reporting for our clients and broker dealers as a community.
Give us a call at 212-668-8700, or follow the contact form link below to learn more.