Broker-Dealers
The Bates Compliance team of compliance professionals and consultants provides a comprehensive set of services and continuing guidance tailored to the needs and requirements of our broker-dealer clients.
Whether for an existing broker-dealer or an initial registration for a new broker-dealer, your dedicated and experienced compliance professionals at Bates will assist in developing and maintaining your compliance programs, at prices that are more than competitive, and with unparalleled service.
I - FINRA Broker-Dealer Registration
Bates Compliance knows, and shepherds clients through, the time-consuming steps and process necessary for an Initial Registration:
- Reserve the name of the broker-dealer with FINRA
- Prepare entitlement forms
- Prepare state filings
- Provide a list and samples of all documentation required to file form NMA (New Member Application)
- Provide the project plan for the broker-dealer registration process
- Schedule regular calls to review progress of the project plan
- Develop financial requirements, initial deposit, and funding process
- Prepare FINRA Form NMA and all required documentation
- Assist in preparation of the Business Plan and the Business Continuity / Disaster Recovery Plan
- Prepare Written Supervisory Procedures
- Prepare the Continuing Education Needs Analysis and Training Plan
- Assist with development of Anti‐Money Laundering Procedures
- Identify required experience and licensing requirements, based on business model
- Prepare and submit Forms U4 for Principals
- Assist in preparation of the initial fidelity bond application
- Prepare Principals for FINRA’s pre‐membership interview
- Attend FINRA’s membership interview (If desired)
- Prepare and submit state applications, as requested
II ‐ Additional Services and Consulting
Ongoing Updates to Written Supervisory Procedures
Bates Compliance provides ongoing updates to your firm’s Written Supervisory Procedures in response to changes to:
- Securities laws and FINRA Rules
- Your internal processes, policies and business model
- Supervisory System
- Issues identified during regular compliance testing
Compliance and Supervisory Testing
- Test supervisory and compliance procedures
- Prepare a written report for the requirements of FINRA Rule 3120(a) detailing the system of supervisory controls, the summary of the test results and exceptions, and any additional or amended supervisory procedures created in response to the test results
- FinOp – Bates Compliance works with your designated in-house or external Financial and Operations Principal to assess your process for creating and filing your FOCUS and SSOI reports
CEO Certification and CEO Report
- Review your firm’s FINRA Rule 3130 policies and procedures
- Review documentation of required CEO and CCO meetings
- Review testing documentation
- Draft FINRA Rule 3130 Annual CEO Report
Anti‐Money Laundering Testing and Training
- Anti‐Money Laundering (AML) Testing – In compliance with the FINRA Rule 3310 requirement to independently test each broker‐dealer’s AML compliance program, Bates Compliance conducts an AML compliance review in order to test and analyze the effectiveness and efficiency of your firm’s AML program.
- AML Training – Bates Compliance prepares and presents annual AML training materials.
Communications and Advertising
- Bates Compliance reviews how your firm creates, reviews and maintains marketing and advertising materials
- Bates Compliance reviews and tests electronic communications surveillance system parameters
- Advertising – Bates Compliance submits all advertising required to be filed with FINRA
Training
- Continuing Education Needs Analysis and Training Plan – Bates Compliance helps prepare your annual Continuing Education and Training Plan
- Annual Compliance Meeting – Bates Compliance prepares and presents materials for the annual compliance meeting via an on‐demand webcast which also tracks attendance and produces an attestation of completion
- Regulatory Continuing Education – Bates Compliance monitors and notifies individuals of the dates for completion of their Regulatory Element Continuing Education
FINRA Examination Support
- FINRA Examination Response Program – For Sales Practice, FinOp, MSRB, special exams, or sweeps by FINRA, Bates Compliance provides onsite and offsite assistance prior to the exam in the form of a mock audit to identify potential deficiencies and initiate corrective action; during the exam, serving as your contact person with FINRA, participating in FINRA reviews and assisting with document requests. BCS is also available to assist you and your counsel with SEC examinations
- Deficiency Letter Response – Bates Compliance prepares written responses to FINRA in response to issues presented during examinations
- Offsite Assistance with Informal FINRA Regulatory Inquiries – Bates Compliance is available to assist in responding to regulatory inquiries
Firm and Branch Office Inspections
- Bates Compliance reviews the activities of each OSJ and supervisory branch office at least annually, nonsupervisory branch offices at least every three years, and non‐branch locations on a regular, periodic schedule. Bates Compliance provides completed checklists and reports of each review
- Bates Compliance reviews your firm’s designation of its principals for OSJs and non‐OSJs and will review supervisory personnel qualifications for the experience or training necessary to be qualified to carry out their assigned responsibilities, as well as the design of the supervisory system to meet the on-site requirement
Ongoing Compliance Support
- Customized Telephone Consulting – Your designated Bates Compliance professional will be available to answer questions from your firm’s compliance personnel
- CRD Administration – Bates Compliance completes all CRD filings with state and federal regulators (including Form U4 and U5 filings)
- Quarterly Customer Complaint and Disclosure Filings – Bates Compliance assists in determining and filing customer complaints and disclosures with FINRA
- Ongoing Form BD and Form BR Review – Bates Compliance reviews and amends Forms BD and BR when required
