The BD Start-Up Process – We Do It Everyday !!
Starting a Broker/Dealer is a time-consuming process requiring the creation, editing and filing of dozens of obscure documents, complicated forms and detailed procedures, all which must be within the regulatory deadlines. Do you really want your organization to spend valuable time and bandwidth to research, understand and implement a complicated regulatory process, that most likely, your organization will never have to use again?
We know what is required by FINRA, the SEC, and each state, to meet and exceed the qualification standards necessary to obtain their approval. We have established long-term supportive relationships with regulatory staff members that allows us to move your firm through the process in a cost effective and timely manner.
B/D Solutions will lead the Broker-Dealer Start-Up process which will allow you to focus on planning and building the most important factor in the success of your business – generating revenue.
Basic Requirements for Every Broker-Dealer Start-Up
Disclosure of All Ownership
Two Principals Requirement
Categories of Broker-Dealers
Broker-Dealers are commonly grouped to in three categories – “a limited purpose BD”, an “introducing firm”, or a “self-clearing firm”. These categories are generally based on the firm’s net capital requirements, but firm’s within each category may conduct vastly different businesses activities.
CLICK on the business activities below that will be conducted by your Broker-Dealer to learn about the specific FINRA issues and requirements of each.
“Limited Purpose” Broker-Dealers – Net Capital = $5,000
- Private Placements – Investment Banking/M&A
- Private Placements – Limited Partnerships, Hedge Funds
- Private Placements – EB-5 Immigration Program
- Private Placements – Real Estate Securities, REITs
- Private Placements – Non-Profit Organizations (e.g. Church Bonds, etc)
- Dealer-Manager / Product Distributor – For Affiliated Issuers
- Dealer-Manager / Product Distributor – For Non-Affiliated Issuers
- Retail Packaged Products – Mutual Funds, Variable Annuities
- U.S. Chaperon BD for Foreign Broker-Dealers
- Referral or Finder Broker-Dealers
“Introducing” Broker-Dealers – Net Capital $5,000 to $100,000
- Retail Brokerage – Corporate Debt, Equity, Options, Riskless Principal Trading
- Foreign Retail Brokerage & Foreign Institutional
- Municipal Securities – Retail & Trading
- Proprietary Trading & Market Making
- Investment Banking/M&A – Public Company Underwriter/ Syndicate Member
- Research Distribution & Institutional Sales
“Self-Clearing” Broker-Dealers – Net Capital $250,000+
- Self-Clearing Operations – Clearance, Settlement, Custody
- Commission Recapture and/or Soft Dollar Payments
Investment Adviser Start-Ups
- SEC Registered Advisers
- State Registered Advisers
- Conversion from State Registration to SEC Registration
- De-conversion from SEC Registration to State Registration
Funding Portal Start-Ups
- Funding Portal within a Broker-Dealer
- Funding Portal Intermediary (Stand Alone)
- Qualified Third Party Services (i.e. “Escrow Services”)
Transfer Agent Start-Ups
- Transfer Agent for Affiliated Issuer
- Sub-Transfer Agent Arrangements