We provide the following services to broker/dealers:


Outsourced CCO Service

The Financial Crises of 2008 and the ensuing landmark legislation have ushered in a host of new SEC and FINRA Rules that have greatly raised the bar for doing business in the securities industry.

At the same time, management is being held to a higher standard by the regulators.  The CEO and CCO are required to be knowledgeable in the new rules the old rules and in the effective and timely deployment of the remedies for complying with the rules. In addition, the expectations of the Board of Directors for most companies are for compliance programs that are not only effective but are also cost efficient. 

Hiring knowledgeable and experienced staff improves the prospect for effective compliance but normally results in substantially higher fixed overhead and may not address all specialized areas.  

Depending on the firm’s size and business model, a solution may be to add the services of an experienced outsourced CCO to the senior management team on a full-time or part-time basis. 


Outsourced FINOP Services


To conduct a securities business, all broker/dealers are required to maintain minimum net capital requirements at all times.   Monthly and quarterly Focus reports are required to be accurate and timely filed with FINRA. 

To fulfill the financial recordkeeping and reporting obligations every broker/dealer is required to maintain the services of a FINRA Series 27 or 28 licensed Financial and Operations Principal (FINOP).  Regulators permit a licensed outside individual to fulfill the FINOP role.  Outsourcing the FINOP role to BDadvisor will provide your firm with a very credentialed and experienced professional at a reasonable cost compared with hiring the required level of expertise in-house.
 

Outsourced Supervisory Principal Services


FINRA Rules require that broker/dealers develop and maintain a supervisory structure that complements a firm’s business model and creates lines of responsibility over the firm’s registered representatives.

BDadvisor will provide a licensed experienced principal to become registered with the firm and  undertake the supervisory duties  for a newly formed broker/dealer when a firm loses a principal or to accommodate business expansion.

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Written Supervisory Procedures (BDs)


The development of the written supervisory procedures for a broker/dealer not only provides the “road map” for implementing the firm’s regulatory program but can also make or break the firm’s chances of prevailing in an arbitration, civil dispute or regulatory action.

Frequently, firms adopt “form procedures” that address lines of business and processes for activities in which the firm is not engaged with the result that the procedures are inadequate, overly burdensome and ultimately are not followed by the firm or its field force.

BDadvisor will provide customized written supervisory procedures that complement your business model after thoroughly reviewing the products and services that you offer and your firm’s supervisory structure.

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Advertising Reviews and Filings


Weaknesses in the advertising review function pose a special problem for a broker-dealer.  Advertising compliance deficiencies that do not comport with the FINRA and SEC advertising rules are publicly disseminated. The more an advertising piece is publically noticed (i.e. the more successful the advertisement) the more discoverable are the potential deficiencies especially by the firm’s competitors who account for the vast majority of advertising complaints and investigations.

We do not merely point out the deficiencies but we provide proactive guidance for changing the piece to meet the FINRA advertising guidelines and we will file the ad with FINRA on your behalf.


Annual Reviews and Control Testing

FINRA Rules for supervision require that broker/dealers undertake a review at least annually the businesses in which it engages. The review must be reasonably designed to assist the firm in detecting and preventing violations of and achieving compliance with applicable securities laws and regulations.


Firms are also required to maintain and enforce a system of supervisory control policies and procedures that test and verify that the firm’s supervisory procedures achieve compliance with the applicable securities laws.

BDadvisor will assist your Firm in performing the annual review of the policies and procedures under FINRA Rule 3110(c)(1) and the periodic control testing of your procedures as  required by FINRA Rule 3120.

Broker-Dealer Registration Services


Section 15 of the Securities and Exchange Act of 1934 requires that all broker-dealers be registered with FINRA, the Self-Regulatory Organization (SRO) of securities broker-dealers.  The registration of a new broker/dealer with FINRA can be a complex and lengthy process.


Our broker-dealer registration services are designed to address the problem areas of the registration process and minimize the delays in gaining membership approval.  We provide assistance to firms in completing new member application (NMA) process that typically include the following components:


  • A detailed business plan with pro-forma projections

  • Initial financial statements

  • Completion of all required forms

  • Written supervisory procedures for all proposed lines of business

  • U-4 registrations and background information of the firm’s principals
  • Responses to information requests from FINRA examination staff
  • Participation with firm’s principals in New Membership Meeting.


Occasionally an existing member firm may wish to expand the firm’s business by adding product lines or changing the firm’s ownership.  These changes may result in a continuing membership application (CMA) process if the proposed change is deemed to be “material”.  We will provide the following assistance to broker/dealers:

  • Participation with the firm’s principals in a materiality conference (MATCON) with FINRA

  • Draft correspondence addressing the proposed changes in business or ownership

  • Prepare a business plan and written supervisory procedures

  • Respond to regulatory requests for additional information and documentation  


Branch and OSJ Audit Services

The periodic auditing of branch and OSJ (office of supervisory jurisdiction) continues to be the ultimate method for testing the effectiveness of a broker/dealer’s supervisory structure and record keeping system. 

The BDadvisor auditing staff consists of experienced professionals that perform thorough compliance and/or financial audits utilizing our own auditing tools or the forms and procedures provided by our clients.  Our branch auditing program includes but is not limited to the following services:

  • Interview of branch personnel

  • Review of books and records

  • Review of financials

  • Sales practice review

  • Annual compliance meetings


Anti-Money Laundering Audits

Since the passing of the USA PATRIOT Act AML programs have become a very significant part of a strong compliance program and an area that is highlighted in most regulatory examinations.  Moreover, any publicly disseminated violations in this area have a very adverse impact on a firm’s reputation.   

Our experienced staff of AML professionals  are qualified as Certified Anti-Money Laundering Specialists (CAMS) will audit your existing program and procedures for compliance with the USA PATRIOT Act , the U.S. Treasury Department Rules and the rules of  FINRA and MSRB.

Training and Continuing Education

Most routine deficiencies and rule violations do not result from willful transgressions of the securities rules but from a lack of knowledge of the rules, products and best practices.  Training is the essential ingredient for creating what is referred to in recent regulatory dictums as a “culture of compliance”.

Our group of professionals understands that training is much easier if it is INTERESTING especially if the training is REQUIRED.   To that end we design and deliver the following continuing education services: 

  • Firm Element Continuing Education programs that are based on a complete needs analysis
  • Annual Compliance Conferences to groups or one-on-one.
  • AML Training programs—annual and on-boarding
  • Specialized training programs that address customer complaints and regulatory scrutiny.

Our Services

Broker/Dealer and Registered Investment Advisor  Consultants

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Ready to Explore New Possibilities?

Please contact BD and Advisor Consultants, Inc. (Bdadvisor) at your convenience for an initial consultation. We’ll work with you one on one to determine a roadmap to success. We look forward to working with you soon.

Call Today: 646-660-0728 or email us at info@bdadvisor.com

advisor

Whether you are starting a broker/dealer or a registered investment advisor for the first time or you have an existing firm, BDadvisor is equipped to offer services and products that will help you focus on what is most important to you, running a successful broker/dealer and/or Registered Investment Advisory firm.


At BD and Advisor Consultants we take the time to understand your business and work with you to customize a solution for your specific needs.

TECHNOLOGY SERVICES


​Operating Solutions


The use of technology is the indispensable element of a successful broker/ dealer or registered investment advisor.  It is the great equalizer between large firms and small firms and is crucial to providing a complete menu of services to your clients. 
Our technology team provides specialized assistance in the following areas:

  • Back Office Systems
  • Workflow Analysis 
  • Document Imaging & Storage
  • Website Development


Cybersecurity


We offer a full suite of cybersecurity solutions and adhere to Federal security policy to protect the Confidentiality, Integrity and Availability (CIA) of information. Our services include the following components: 

  • IT Asset Management
  • Information Security Policy 
  • Risk Assessments 
  • Continuous Monitoring
  • Roles and Responsibilities Assignment
  • Continuity of Operations Plan
  • Information Security Training
  • Independent Verification & Validation
  • Security Test & Evaluation
  • Incident Response
  • Compliance Audits
  • Penetration Testing
  • Vulnerability Scans

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We Provide the Following Services to Registered Investment Advisors


Outsourced CCO Service

In many instances a new firm is not able to employ a full-time experienced Chief Compliance Officer.  There are also occasions when a firm’s existing CCO leaves or retires creating an immediate need for an experienced professional to assume the CCO responsibilities. 

By working closely with your firm’s management and staff a BDadvisor senior consultant can administer your RIA’s compliance program by functioning as your firm’s Chief Compliance Officer and/or training you staff to assume the CCO position.  We do not burden you with long-term contracts.  You can retain our outsourced CCO services for as short or as long of a period as your needs require.

If you engage us to act as your CCO, our commitment will include but not be limited to  the following services:

  • Contemporaneous updating of compliance systems and written procedures.
  • ADV updates and notice filings.
  • Registration of firm and personnel.
  • Staff training.
  • Management of code ethics, trade pre-clearance and insider trading policies.
  • Review of advertising and sales materials.
  • Coordinating email and social media monitoring.
  • Liaising during regulatory examinations and inquiries. 
  • Conducting the Annual compliance review and preparing the report.


Annual Reviews

SEC Rule 206(4)-7(b) requires each registered adviser to review its policies and procedures at least annually to determine their adequacy and the effectiveness of their implementation. BDadvisor can provide the following services to assist you in fulfilling your annual review requirement: 

  • Review your firm’s business model and identify relevant existing or newly implemented SEC or state requirements
  • Test your firm’s written policies and procedures to determine consistency with actual practices and day-to-day operations.  
  • Review  Form ADV Parts 1 and 2 disclosures, investment advisory agreements, solicitors agreements, privacy policy and  disaster recovery plan
  • Provide a written report of the findings with suggested corrective actions and recommendationsthat address any perceived weaknesses that our team of experienced professionals identify. 


WSPs and CODE of Ethics

We will create or update your written supervisory procedures and code of ethics that conforms to your firm’s business model,  incorporates all of the relevant regulatory guidelines and serves as a useful tool and reference to your investment advisor representatives and employees.   

Form ADV Parts 1 and 2A Drafting and Filing

Our experienced professionals will create or update your firm’s Form ADV Part 2A with a concise description of your firm’s business model that conforms with the SEC disclosure requirements.  We will also work with your individual advisors to draft their Form ADV Part 2Bs that highlight their skills and experience while meeting regulatory guidelines.

We will  file your Annual Amendments in a timely fashion and we will make Other-Than-Annual Amendment filings when material changes require updates.

New Registrations – SEC or States


Registering an RIA requires a carefully articulated description of your firm’s investment advisory process and a clear understanding of the registration process.   We assist you with your goal of achieving a smooth and timely registration by providing the following services:

  • Draft Form ADV Part 2A (written brochure) based on Firm’s business model
  • Complete and electronically file Form ADV Parts 1 and 2A with SEC and states
  • Licensing of advisor representatives and preparation of Form ADV Part 2Bs 
  • Prepare customized written policies and procedures manual
  • Provide tailored business continuity plan (BCP) and code of ethics
  • Develop client agreements, solicitor’s agreements and privacy policy


Advertising Reviews

The focus of our advertising reviews for registered investment advisors addresses the the SEC’S Advertising Rule with respect to investment advisors that specifically prohibits a firm from publishing, circulating or distributing any marketing materials that are considered testimonials including postings on websites and social media.  

We will ensure that your performance claims, the use of graphs and charts and past recommendations are adequately backed up with required records and meet SEC disclosure guidelines.