Why you'll need to hire an outside firm when initiating registration for Broker Dealers

In these turbulent economic times the government is pushing for mandatory Broker Dealer registration from all financial firms in order for these institutions to achieve SEC compliance. Broker dealer registration is the hot topic on Wall Street and since the economic downturn it is becoming essential for all financial firms to adhere to SEC compliance regulations. Broker Dealer Registration compliance is already in place for all broker dealers and investment advisors, but the SEC is still pushing for all investment entities to participate. Even President Obama and Treasury Secretary, Tim Geithner, have been vocal about financial compliance and have recently both been trying to pass legislation about the matter on Capitol Hill. Some analysts are saying that much of this new broker dealer registration legislation will be passed by the end of the fiscal year 2009. This is due to the increase in investing fraud and other under-handed activities perpetuated by some Wall Street investment professionals.

But this demand for compliance is also coming from another powerful source besides the SEC. Investor confidence is at an all time low, and firms who do not register with the SEC and follow strict compliance protocol are losing clients and revenue. For those investors who still dare to play the game, they are conducting much stricter due diligence than in the past, and are looking for investment firms who have registered with the SEC and have a strong compliance program. These uncertain times are calling for a drastic change and that change is being spearheaded by the investor. Any financial professional who continues to ignore this fact is costing their firm clients and revenue.

But SEC registration is only the first step in becoming fully compliant. After broker dealer registration the financial firm must then follow a strict and ever changing set of rules and regulations to remain compliant. This process is complex and lengthy and many times very frustrating without professional help. After the initial broker dealer registration a firm must prepare for compliance audits and investigation of all records by the SEC and/or FINRA. In order for an investment firm's broker dealer registration registration to go smoothly, the firm needs to hire an experienced and reputable outside accounting and compliance company.

A solid accounting and compliance company will be able to alleviate much of the stress and frustration that comes with the daunting task of broker dealer registration. A good accounting and compliance firm will also always recommend that all their clients develop a compliance program complete with a Broker Dealer Registration plan, a CCO, (chief compliance officer) a Compliance Manual, and an Annual Audit. Do not use an accounting and compliance firm who does not recommend these steps, or that does not offer mock-SEC audits, CCO training, and who will not write or revise your Compliance Manual. Any experienced accounting and compliance firm will always provide these services and more to help their clients with the SEC registration process.

If you would like to receive more information about broker dealer registration and how an accounting and compliance expert can help, please fill out the form to the right of the page and an accounting professional will contact you regarding your complimentary consultation.