broker-dealers | Oyster Consulting

Best Practices for Broker-Dealer Expense Sharing Agreements

August 17, 2021

In the 2021 Report on FINRA’s Examination and Risk Monitoring Program, one of the issues FINRA highlights is insufficient documentation regarding expense-sharing agreements, an issue that remains on the list year after year. The requirements are clear. The broker-dealer is required to account for all expenses as if it were a stand-alone entity. If it […]

Regulation BI and “Reasonably Available Alternatives”

March 16, 2021

Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange Commission (SEC) have both indicated a greater level of scrutiny and higher level of expectation of broker-dealer and investment adviser compliance with Regulation Best Interest (Reg BI). Of note is their focus on the Care Obligation requirement that representatives assess “reasonably available alternatives” when making […]

Broker-Dealer Consolidated Report Enforcement Actions

August 8, 2019

Are Your Internal Controls, Written Procedures and Supervisory Reviews Enough? If you have reviewed the enforcement actions filed by FINRA related to the use of consolidated reports by broker-dealers, you are probably wondering if you are doing enough to protect your firm. Here is what you need to know to help make that determination. Consolidated […]

Managing the Clearing Platform Transition Process

May 2, 2019

Transitioning your platform can be a vital component of making sure your firm is successful for many years to come. Managing your firm’s platform transition is a significant undertaking that will impact most areas of your business. Consistency of communication with your leadership, employees and vendors is just one part of a very complex process. […]

The Business Case for Evaluating your Clearing Partner

March 5, 2019

The economic impact to retail broker-dealers of their clearing strategy is larger than ever. Whether deciding between self clearing vs. fully-disclosed, or choosing the best provider when the answer is obvious, a thoughtful analysis and due diligence must be conducted to achieve your best results. Much is riding on this decision in order to protect your firm […]

NASAA & FINRA Reports Point to Regulatory Expectations for Heightened Supervision

February 5, 2019

FINRA’s 2019 Risk Monitoring and Examination Priorities Letter was released last week. While the letter’s second paragraph lists areas of focus which are detailed throughout the report, the third paragraph includes a brief statement about how FINRA will focus on risk related to associated persons with a “problematic regulatory history”. Where there was not a […]

SEC Exam Priorities – Regulatory Focus in 2019

January 8, 2019

The SEC’s Office of Compliance Inspections and Examinations (“OCIE”) released its 2019 Examination Priorities on December 20, 2018. While most of the topics are familiar, there are a few new items of note. OCIE has divided its priorities into four categories: Retail Investors, Including Seniors and Those Saving for Retirement OCIE will continue to focus […]

FINRA Expands Registration Permissions

September 28, 2018

In 2018 FINRA established new registration and qualification requirements for broker-dealers, including: Please see our previous blogs on the 2018 FINOP requirements and the updated registration categories. Expanded Registration Permissions Overview In 2018 FINRA expanded its permissive registrations to include all associated persons, including those working solely in a clerical or ministerial capacity. Previously, firms […]

FINRA Streamlines Representative Qualification Exams

September 20, 2018

FINRA is restructuring its Representative level qualification exams (e.g., Series 7 and 79) to eliminate the redundancies that currently exist in the examination process. Beginning October 1, 2018, new representatives will need to take a new exam, the Security Industry Essentials (SIE) exam. In addition, new representatives will need to take a top-off exam in […]

Act Now – FINOP Changes Required October 1

September 11, 2018

On October 1, 2018 FINRA changed its registration requirements for Chief Financial Officers (CFOs) and Chief Operating Officers (COOs). It was more than just a title change. The requirement for certain firms to have a CFO/COO (requiring Series 27/28 licensing) was applied to ALL firms, and the registration category for these firms is being split […]

Considering Offering Digital Asset Products and Services? Engage Your Operations Team Now

August 20, 2018

Trying to merge digital assets with the current financial services industry is a bit like installing solar panels on a home that’s already on the electrical grid. It can be done, but if you hook it up incorrectly, the whole thing could go up in flames. Anyone who has looked at the About Oyster webpage […]

Regulatory Actions – ICOs and Digital Trading

July 17, 2018

Regulators in the digital asset space are focusing a significant amount of attention to Initial Coin Offerings (ICOs) and digital asset trading. Their activities have included addressing the lack of transparency of exchanges that trade digital assets, jurisdictional issues, and the need to consider registration or qualifying for an exemption for ICOs and cryptocurrency-related investments. […]

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