In the current legislative environment, it appears that significant tax changes are on the horizon. That said, the issue of corporate conversion of registered entities such as FINRA broker-dealers and registered investment advisors comes up quite frequently. For example, a broker-dealer may want to convert from a corporation to an … Continue reading
Buying a FINRA Broker-Dealer Buying any business can prove to be complex. Buying a FINRA broker-dealer can be complex and then some. Over the years, Mitch Atkins, while an executive at FINRA and now as a consultant, has analyzed literally hundreds of purchase and sale transactions involving broker-dealers and their … Continue reading
FINRA Membership Application Rule retrospective – Interested in a summary of the comments received by FINRA? See Mitch Atkins’ LinkedIn article about it. FINRA sometimes seeks comments on rule proposals and other matters. This time, comments were solicited on the FINRA Membership Application Rules as part of its rule retrospective program. … Continue reading
FINRA’s continuation of membership rules require that broker-dealers file a FINRA CMA material change in business application (also called a CMA, or continuation of membership application). As a FINRA CMA expert, FirstMark often receives inquiries about exactly when and how to file a FINRA CMA material change application. The answer to this … Continue reading
FINRA Membership and Registration Rule 1017 requires that FINRA broker-dealers preparing to effect a “material change in business” must file for approval of that change by FINRA. A “material change” is defined in FINRA Rule 1011(k). FirstMark’s discussion on that appears here. In order to provide for some amount of … Continue reading
If you have filed a CMA with FINRA and are being asked for an “Arbitration Plan,” it is important that you develop a comprehensive document that will stand up to scrutiny by regulators. Requests for a FINRA CMA Arbitration Plan usually happen when a broker-dealer is selling its assets. An … Continue reading
In 2012, FINRA announced that it would begin charging a fee for continuing membership applications (or CMAs). Also, at that time, FINRA announced increases in the new member application (or NMA) fees. The FINRA CMA fee structure for both is based on a grid that appears in Section 4(i)(3) of … Continue reading
As has been pointed out in the trade press in recent years, there have been numerous instances of broker-dealers going out of business for a number of reasons, not the least of which is being on the wrong end of an arbitration award. For small broker-dealers, an adverse arbitration award … Continue reading
The FINRA Continuation of Membership Application (“CMA”) is covered under FINRA Rule 1017 (among others), and is often referred to as a “1017” application. The rule provides that any of the events enumerated in Rule 1017(a) require the filing of an application. Generally, these include: a merger, an acquisition, an … Continue reading
Gaining approval of a material change in business or other type of membership application is dependent upon whether the standards for admission are satisfied. These standards are spelled out in FINRA Rule 1014(a). However, prior to evaluating whether the standards have been satisfied, FINRA will evaluate whether an application for … Continue reading
