Investment Operations

Broker-Dealer Compliance Advanced

Categories Advanced, Compliance

Course Instructor

Course Level

Expert

Certification

Certificate

Delivery

Via Zoom

Hours (EST)

9:00 am - 1:00 pm​

Description

Date: TBD

If you need to understand how broker-dealers are formed and structured, the regulatory requirements they are subject to from the SEC and FINRA and the evolving landscape of the industry, or are an entrepreneur considering establishing a new brokerage firm, someone aspiring to work in the securities industry, career transitioning to this industry, an owner of a private company considering tapping the capital markets, a new compliance personnel, or just want to broaden your expertise on these critical trends, this is the seminar. It is not aimed at financial engineers looking for hedging and trading strategies, but for those professionals seeking to expand their knowledge with insights and practical guidance, such as attorneys, operations personnel, and new entrants to the industry.

Learning Objectives

  • The basics of broker-dealer registration requirements
  • Licensing and registration requirements for associated persons of broker-dealers
  • The various types of broker-dealers
  • SRO membership requirements
  • Membership in multiple SROs
  • The federal securities laws and SRO rules governing broker-dealers
  • Overview of various types of business models
  • Financial and operational rules
  • Supervisory and internal controls.
  • Sales practice rules
  • Disciplinary Process

Prerequisite: Broker-Dealer Compliance Fundamentals course or equivalent work experience

Agenda

Regulatory Requirements for a Broker-Dealer

  • An overview of the Federal Securities Regulation
      1. Securities Act-1933
      2. Securities Exchange Act-1934
      3. Investment Company Act-1940
      4. Investment Advisers Act-1940
  • SEC and SRO requirements
  • Broker-Dealer Registration Requirements
      1. Section 15(a) registration requirements
      2. Exemptions
      3. Finders
      4. Networking Arrangements
      5. Evolving business structures
  • Licensing requirements for associated person of broker-dealers
      1. Differences between associated persons and employees
      2. Licenses
      3. Continuing Education
      4. Forms U4, U5 and U6
  • FINRA Membership Process
      1. 14 standards
      2. NMA
      3. CMA
      4. Material Consultations
      5. Issues in connection with BD withdrawal
  • Risk Assessments Rules
      1. Material Associated Persons
  • Types of Broker-Dealers
      1. CAB
      2. Crowd Funding Portals
      3. Rule 15a-6 exemption for foreign broker-dealers
      4. Master-sub account arrangements
  • Form BD/CRD
      1. IARD
  • SEC/SRO Pyramid
      1. Rule 4530 and self-reporting obligations
      2. Net Capital Deficiencies
  • Overview of SRO Examinations Process:
      1. Off-Site Surveillance
      2. Examinations
  • SEC Oversight of SRO Examination Process
  • Broker-dealer reporting obligations
  • SRO/SEC Rulemaking

DAY 2

Overview of Broker-Dealer Functions

  • Introducing Firms
  • Prime Brokerage/Soft Dollars
  • Short Selling/Securities Lending
  • Clearing Firms
  • Clearing Agreements
      1. Omnibus
      2. Fully-Disclosed
  • Financial and Operational Rules
      1. Financial Responsibility Rules
      2. Record Keeping Rules
      3. Net Capital
      4. Customer Protection
  • Sales Practice
      1. Know Your Customer
      2. Suitability/Fiduciary Duty
      3. Product-Based Suitability
      4. RR compensation/conflicts of interest
      5. Penny Stock Rules
      6. Communications with the Public
  • Supervision:
      1. SEC and SRO standards
      2. WSPs
      3. Review of employee/associated person:
      4. Insider Trading
      5. AML
      6. Internal Controls
      7. CEO Certification
      8. Annual Compliance Report
      9. Role of CCO and compliance
      10. Compliance and Supervisions

Summary & Questions

In-House Training

Custom Training can help you achieve your corporate training goals while staying on budget and focusing the content on the needs of your group. Email your questions regarding corporate training to training@investmentoperations.net.

2024 Training Calendar

Training Catalogue

Course Instructor

Course Level

Expert

Certification

Certificate

Delivery

Via Zoom

Hours (EST)

9:00 am - 1:00 pm​

Description

Date: TBD

If you need to understand how broker-dealers are formed and structured, the regulatory requirements they are subject to from the SEC and FINRA and the evolving landscape of the industry, or are an entrepreneur considering establishing a new brokerage firm, someone aspiring to work in the securities industry, career transitioning to this industry, an owner of a private company considering tapping the capital markets, a new compliance personnel, or just want to broaden your expertise on these critical trends, this is the seminar. It is not aimed at financial engineers looking for hedging and trading strategies, but for those professionals seeking to expand their knowledge with insights and practical guidance, such as attorneys, operations personnel, and new entrants to the industry.

Learning Objectives

  • The basics of broker-dealer registration requirements
  • Licensing and registration requirements for associated persons of broker-dealers
  • The various types of broker-dealers
  • SRO membership requirements
  • Membership in multiple SROs
  • The federal securities laws and SRO rules governing broker-dealers
  • Overview of various types of business models
  • Financial and operational rules
  • Supervisory and internal controls.
  • Sales practice rules
  • Disciplinary Process

Prerequisite: Broker-Dealer Compliance Fundamentals course or equivalent work experience

Agenda

Regulatory Requirements for a Broker-Dealer

  • An overview of the Federal Securities Regulation
      1. Securities Act-1933
      2. Securities Exchange Act-1934
      3. Investment Company Act-1940
      4. Investment Advisers Act-1940
  • SEC and SRO requirements
  • Broker-Dealer Registration Requirements
      1. Section 15(a) registration requirements
      2. Exemptions
      3. Finders
      4. Networking Arrangements
      5. Evolving business structures
  • Licensing requirements for associated person of broker-dealers
      1. Differences between associated persons and employees
      2. Licenses
      3. Continuing Education
      4. Forms U4, U5 and U6
  • FINRA Membership Process
      1. 14 standards
      2. NMA
      3. CMA
      4. Material Consultations
      5. Issues in connection with BD withdrawal
  • Risk Assessments Rules
      1. Material Associated Persons
  • Types of Broker-Dealers
      1. CAB
      2. Crowd Funding Portals
      3. Rule 15a-6 exemption for foreign broker-dealers
      4. Master-sub account arrangements
  • Form BD/CRD
      1. IARD
  • SEC/SRO Pyramid
      1. Rule 4530 and self-reporting obligations
      2. Net Capital Deficiencies
  • Overview of SRO Examinations Process:
      1. Off-Site Surveillance
      2. Examinations
  • SEC Oversight of SRO Examination Process
  • Broker-dealer reporting obligations
  • SRO/SEC Rulemaking

DAY 2

Overview of Broker-Dealer Functions

  • Introducing Firms
  • Prime Brokerage/Soft Dollars
  • Short Selling/Securities Lending
  • Clearing Firms
  • Clearing Agreements
      1. Omnibus
      2. Fully-Disclosed
  • Financial and Operational Rules
      1. Financial Responsibility Rules
      2. Record Keeping Rules
      3. Net Capital
      4. Customer Protection
  • Sales Practice
      1. Know Your Customer
      2. Suitability/Fiduciary Duty
      3. Product-Based Suitability
      4. RR compensation/conflicts of interest
      5. Penny Stock Rules
      6. Communications with the Public
  • Supervision:
      1. SEC and SRO standards
      2. WSPs
      3. Review of employee/associated person:
      4. Insider Trading
      5. AML
      6. Internal Controls
      7. CEO Certification
      8. Annual Compliance Report
      9. Role of CCO and compliance
      10. Compliance and Supervisions

Summary & Questions

In-House Training

Custom Training can help you achieve your corporate training goals while staying on budget and focusing the content on the needs of your group. Email your questions regarding corporate training to training@investmentoperations.net.

2024 Training Calendar

Training Catalogue

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