Most registered broker-dealers are required to employ a FinOp (Financial and Operations Principal). This requirement can be met with an outsourced FinOp consultant. Read on to 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.
Third Party FinOp Licensing
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 FinOps who have passed the examination and have fulfilled the continuing education requirements. The exam substantiates that a FinOp has been sufficiently educated in broker dealer accounting. The exam measures the knowledge and understanding of the financial responsibilities, rules, and record-keeping requirements of broker-dealers and introducing broker-dealers.
The FinOp’s responsibilities are extensive so it is extremely important for this individual to be highly qualified. The maintenance and supervision of books and records, accurate computation of net capital, and timely filing of financial regulatory reports are at the forefront of the responsibilities 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.
Benefits of an Outsourced FinOp
Because of the importance of the role and the wide experience required to do it well, it is advantageous to outsource this role to a team that is focused on the broker dealer industry. A firm like ACI can also leverage their accounting & broker dealer experience across multiple clients.
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. The exposure to an extensive diversity of broker dealers allows ACI to offer 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. 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.