Buy a Broker-Dealer
The CMA process is a difficult one – but don’t worry; we have you covered. From start to finish, our seasoned CMA – 1017 principals will walk you through the entire process, from the planning phase, all the way through to the membership interview.
Here are some common questions we hear:
Question 1: Why Should I buy a BD instead of starting a new one?
The primary advantage in purchasing an existing broker-dealer, instead of starting one from scratch is that with proper deal structuring and diligence, the amount of time required is greatly reduced. You could be up and running very quickly, conducting business with little delay. While adding additional business lines will take some time, with the right planning, you can be up and running within the same month.
Question 2: How can CXG help us with this process? How are you different?
The advantage in working with CXG for your broker-dealer comes down to expertise and service. We’ve been through the process enough times, and deal with Finra on an ongoing basis, so we know how to set your firm up for a successful approval, the first time. Your initial consultation includes an overall assessment, presentation of options, and an examination of what each alternative means to your business. Whether costs, capabilities, or schedule is your most important concern, we have options available that best meet your needs.
Our broker-dealer sales process and services include:
- Initial consultation
- Locating the right BD for purchase from inventory
- Prepare and submit Form BD
- Documentation of new ownership structure
- Prepare the CMA
- Provide you with Outsourced principals (if required)
- Business plan
- Prepare and submit Form U4
- Written Supervisory Procedures
- Clearing firm selection, and document review
- Fidelity bond application
- Internal processes, procedures, and documents (such as new account docs)
- Anti-Money Laundering Compliance Program
- Customer Identification Program
- Business Continuity Plan
- Follow up and liaison with FINRA, to streamline the process
- FINRA membership interview preparation
Contact us today to learn more about starting a broker-dealer and how CXG can make the process smoother, faster, and successful.