Broker-Dealer Regulation

We provide advice on all matters related to the operation of a broker-dealer. Our attorneys are experienced practitioners, many of whom were employed previously with the SEC or FINRA and its predecessor, the NASD. The services we provide to our broker-dealer clientele include:

• Interpretive guidance on SEC, FINRA and state regulatory requirements including those related to the SEC Net Capital and Customer Protection rules, Regs. NMS and SHO, Rule 15a-6 arrangements, anti-money laundering, short sales, margin rules, mark-ups and mark-downs, revenue sharing, advertising, trade-reporting, OATS, best execution, recordkeeping, statutory disqualification, disclosure, and supervisory procedures
• Advice on all aspects of Section 28(e), commission-sharing, commission recapture and directed brokerage arrangements
• Advice on broker-dealer compliance issues and registration requirements and exemptions under federal and state law
• Assistance with the preparation, implementation and maintenance of comprehensive broker-dealer compliance programs, including insider trading procedures and information barriers
• Assistance with applications for registration as a broker-dealer or a registered person with the SEC and FINRA (Form NMA, Rule 1013)
• Advice on change in Membership Applications for broker-dealers experiencing material changes of ownership, control or operations (Rule 1017)
• Internal and/or independent reviews of past activities or transactions to determine compliance with relevant regulatory requirements
• Preparation, review and negotiation of contracts and agreements including with respect to soft dollars, research and correspondent agreements between introducing, executing and clearing firms
• Preparation and filing of routine and non-routine amendments to Form BD, Form BR, Form U-4, and Form U-5
• Advice on MC-400 Applications for broker-dealers seeking to employ or continue to employ persons subject to a statutory disqualification
• Preparation of clients for, and assisting clients with, routine, sweep, and for cause SEC and FINRA inspections, examinations and investigations
• Obtain no-action and interpretive relief from SEC and other regulatory bodies
• Draft comments to the SEC regarding proposed new rules and rule changes that effect the brokerage industry