Uniquely qualified as former regulators to assist member firms

Get in touch

Increasingly Complex Regulation

RegComp assists broker-dealers, including limited scope brokers and capital acquisition brokers and other financial intermediaries on regulation and compliance with federal securities and derivatives laws, state blue-sky laws, and the rules of FINRA, the NFA and other self-regulatory organizations (SROs). We offer customized, comprehensive and cost-effective services to broker dealer owners, CCOs, FINOPs and their teams.

Our consultants assist with the formation, registration and ongoing compliance support of regulated entities and the expansion of brokerage, advisory and derivatives activities in the U.S. and across borders. We provide enforcement assistance, aid in the performance of independent anti-money laundering and internal audits and interface with regulatory authorities. We have deep experience as industry regulators and senior industry compliance executives at financial services companies, which informs our comprehensive and pragmatic approach to problem-solving. Let us assist your firm in the following areas.

Annual Audit Report

FINRA Rule 3120 requires designated principals at member firms to submit, no less frequently than annually, a report to the firm's senior management that details the firm's system of supervisory controls, the summary of the test results and significant identified exceptions, and any additional or amended supervisory procedures. FINRA Rule 3130 requires a certification to be made by the member firm’s chief executive officer regarding the adequacy of the supervisory system. Please contact us if you would like more information on any of these requirements or require assistance executing an audit.

Independent AML Audit

Our regulatory experience, combined with our expansive transactional knowledge, makes us the firm of choice for member firms when conducting independent reviews. We are well positioned to engage in audits. Our clients include limited scope brokers, mid-sized broker dealers and financial institutions. Consistent with the Bank Secrecy Act, FINRA Rule 3310 also requires firms, at a minimum, to provide for annual (on a calendar-year basis) independent testing for compliance to be conducted by member personnel or by a qualified outside party. If the firm does not execute transactions with customers or otherwise hold customer accounts or act as an introducing broker with respect to customer accounts (e.g. engages solely in proprietary trading or conducts business only with other broker-dealers), the independent testing is required every two years (on a calendar-year basis).

FINRA Enforcement

Small firms represent a critical portion of FINRAs membership and often face regulatory challenges that are unique from their large firm counterparts. FINRA investigates potential securities violations and, when appropriate, brings formal disciplinary actions against firms and their associated persons. FINRA investigations may be opened from various sources, including automated surveillance reports, examination findings, filings made with FINRA, customer complaints, tips, referrals from other regulators or other FINRA departments and press reports. Let our firm provide you with the regulatory guidance and best practices required to fulfill your obligations.

2021-2022 Enforcement Priorities
1. Obtaining restitution for harmed customers
2. Ridding the industry of brokers engaged in fraud or other egregious misconduct—especially brokers with a history of violations
3. Protecting seniors and vulnerable investors
4. Ensuring the integrity of the markets

Supervision (FINRA Rule 3110)

FINRA Rule 3110 is intended to ensure that a firm establishes and maintains a system to adequately supervise the activities of its associated persons.

Supervisory Control System (FINRA Rule 3120)

FINRA Rule 3120 is intended to ensure that firms implement Supervisory Control Policies (SCPs) that test and verify their supervisory procedures.

Annual Certification of Compliance and Supervisory Process (FINRA Rule 3130)

FINRA Rule 3130 requires firms to designate and identify to FINRA on schedule A or Form BD one or more principals to serve as a Chief Compliance Officer (CCO).

Best Practices

RegComp’s professionals consists of former FINRA examination staff, with nearly 20 years of combined experience examining all types of U.S. broker-dealers. Leveraging our experience in this field, we have developed best practices to help your firm mitigate the risk of supervisory failures.

Firms leverage our extensive experience.

As a broker dealer, you can leverage the extensive compliance experience RegComp deploys as former regulators and in-house senior compliance professionals working at independent broker dealers. Our experience leaves us uniquely qualified to help with your compliance needs. We offer customized assistance with broker dealer compliance in the following areas:

Written Supervisory Procedures (WSP)
CAB Policies and Procedures
Supervisory Controls Testing
FINRA Exam Responses
FINRA Rule 3130 Annual Certification
Risk Assessment
Anti-Money Laundering Program (AML)
Business Continuity Plan (BCP)
Continuing Education
FINRA Licensing and Exam Support
Registrations and Form Filings
Independent AML Audit
Continuing Membership Application (CMA)
Marketing and Advertising
Annual Compliance Report (Rule 3120)
Recordkeeping (Books and Records)
Best Execution and Trade Surveillance
New Membership Application (NMA)

Explore other services