
By Ann Griffith
Subscribe to our original industry insightsFINRA is changing its registration requirements for Chief Financial Officers (CFOs) and Chief Operating Officers (COOs). The new registration rules take effect October 1, 2018.
It is more than just a title change. The requirement for certain firms to have a CFO/COO (requiring Series 27/28 licensing) is being applied to ALL firms, and the registration category for these firms is being split in two:
The Principal Financial Officer (PFO) is responsible for continuing net capital compliance, financial filings and the related books and records.
The Principal Operations Officer (POO) is responsible for the day-to-day operations of the business, including receipt and delivery of securities funds, safeguarding customer and firm assets, calculation and collection of margin from customers, processing dividend receivables and payables, reorganization of redemptions, and related books and records. Principal Operations Officers must also be registered as Series 99 Operations Professionals if they hold a qualifying exam (e.g., Series 6 or 7).
If a firm does NOT self-clear or provide clearing services, the firm can designate the same person as the PFO and POO. Smaller firms can also request a waiver of this requirement.
Due to the complexity of SEC and FINRA rules, the size of the company and other factors, many broker-dealers outsource the PFO and POO functions rather than hiring a full-time individual. Oyster Consulting has registered PFOs with significant experience supervising finance teams, performing the calculations and filing the reports. They will share their expertise, prepare FINRA’s Net Capital and FOCUS Reports, SIPC’s semi-annual reports and provide support to your firm. Oyster’s Principal Operations Officers will, among other things, assess, develop and implement your firm’s current operations policies and procedures, and manage operations to meet budget, business and other strategic goals. Oyster can support the day-to-day operations across your firm, allowing you to spend valuable time investing and communicating with clients.
For more information about how Oyster can assist your firm, please complete our contact form, or call (804) 955-5400 and one of our Relationship Managers will be happy to help you.
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