FINOP Services & Responsibilities - Series 27 FINOP

Outsourced FinOP Services

Are you a Broker dealer looking for outsourced FinOp services? By outsourcing these activities to a licensed FinOp professional, you can save your firm money while gaining expertise. Whether you’re a start-up firm in need of a FINOP, or a mid-sized firm looking to bring on a seasoned CFO, our principals can help with:

  • Reduce risk with expert support to meet complex regulatory demands and deadlines
  • Focus on your core operational needs and strategic goals
  • FINOP solutions scale to your needs
  • Substantial cost savings over in-house FINOP or CFO
  • Advanced FINOP capabilities & specialization

Most broker-dealers registered with FINRA need to hire a Financial and Operations Principal (FinOP). To fulfill this requirement, a broker dealer can retain the services of an outsourced FinOp licensed consultant. Continue reading to discover the benefits of outsourcing FinOp Services with Compliance Exchange Group (CXG).

Series 27 Licensed FinOP Outsourcing

Broker-dealer compliance with SEC and FINRA rules for preparation and retention of financial and operational books is mandatory. A licensed and registered Series 27 Financial and Operations Principal (FINOP) is required to fulfill a variety of technical duties, including the maintenance of Net Capital reports, retention of firm financials, and submitting Focus II and other reports on a monthly, quarterly, and annual basis.

FinOP Responsibilites

There are numerous responsibilities of a FinOp, which is why it is vital that this individual is highly qualified. A FinOP needs to have a thorough grasp of the broker dealer’s reporting needs and business operations. Essential functions of any licensed FinOp are: supervising and maintaining records and bookkeeping, accurately calculating net capital, filing financial regulatory reports on-time, and understanding customer protections. Failing to perform any of these responsibilities could result in regulatory infractions, which would hinder the success of any firm.

FinOp Responsibilities Cover The Following:

  • Audit of current accounting practices
  • Accuracy review and approval of financial reports
  • Net Capital Compliance reports
  • Monthly Net Cap & quarterly FOCUS reports
  • Annual FOCUS Schedule I reports
  • Quarterly SSOI reports
  • Quarterly Form Custody filing
  • SIPC 6 and SIPC 7 filing
  • Supervision of your financial team
  • Primary contact with regulatory agencies for financial reporting
  • Net Capital Computations
  • Financial Statement Preparation
  • Form Custody
  • Bank Reconciliations
  • Brokerage Statement Analysis
  • Annual Audit Support
  • FINRA Examination Support
  • Accounting Due Diligence
  • Bookkeeping

It is essential that any FinOp gains industry experience in order to adequately follow the rules and procedures defined by FINRA Rule 1022 and all FinOp related FINRA mentions to satisfy or exceed industry best practices.

Benefits Of Outsourcing a FinOP

Due to the importance of the responsibilities carried out by the FinOP, an extensive amount of experience is required in order to sufficiently comply. Because of this high bar of entry outsourcing a Licensed FinOp is typically the more cost-effective choice for most broker-dealers. The team at Compliance Exchange Group (CXG) has decades of accounting and experience with broker dealers that your firm could leverage in order to fulfill the FinOP responsibilities.

While larger firms have the capital to hire, a full-time FinOp in-house, most medium and small broker dealers do not. For these smaller firms, it is not practical to employ a licensed FinOP in-house. FINRA has acknowledged the financial strain hiring a FinOp in-house can have on financial services firms. As a result, FINRA permits broker dealers to outsource the FinOP responsibilities to a qualified third party, like Compliance Exchange Group (CXG).

Why Outsource Your FinOp Responsibilities with CXG?

For years, Compliance Exchange Group (CXG) has proven itself to be a leader in the FinOp outsourcing industry. We have supported many broker dealers that are involved in multiple types of securities transactions. The experience gained through our dealings with a diverse field of broker dealers allows us to offer unmatched expert advice to our clients.

While each client will only register one outsourced FinOp, you will have the support of our entire team. Through every client engagement our FinOps deal with unique situations. By leveraging the lessons learned through each of these encounters we have become industry experts, with the resources needed to confront any potential regulatory question or concern that may arise. At Compliance Exchange Group (CXG) we have established effective internal systems that assure our reporting exceeds FINRA’s expectations and limits lead time.

At Compliance Exchange Group (CXG) we are passionate about compliance and building long-term business relationship with our clients. The CXG team remains up-to-date on industry best practices to ensure we are always a step ahead of the continually evolving regulatory landscape. We actively participate within the compliance community through consultations with auditors and regulators in order to continue to improve on our financial reporting for clients.

Outsourcing FINOP Services With CXG LLC

Outsourced FINOP Services from Compliance Exchange Group can bridge the gap and manage all your SEC and FINRA compliance needs. Our Outsourced FINOP Services portfolio includes:

  • Audit of current accounting practices
  • Accuracy review and approval of financial reports
  • Net Capital Compliance reports
  • Monthly Net Cap & quarterly FOCUS reports
  • Annual FOCUS Schedule I reports
  • Quarterly SSOI reports
  • Quarterly Form Custody filing
  • SIPC 6 and SIPC 7 filing
  • Supervision of your financial team
  • Primary contact with regulatory agencies for financial reporting

CXG has outsourced CFO’s and licensed Series 27 FINOPs with leading experience supervising finance teams, reviewing financial information, and filing necessary reports. They are available to share their expertise with your company and provide critical support to management.

Request a Consultation

Don’t let compliance be a distraction from your core operations. CXG has the experience and resources to efficiently manage your financial preparation, reporting, and filing requirements. Contact us today to learn more about cost effective outsourced FINOP solutions for your organization.

Ready to see what we can do for you?

Speak with one of our Principals and discuss how we can help your business.

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