Last Updated on May 31, 2022 by Maria James
ARG provides a customized outsourced solution for broker-dealers. A FINRA Series 27 FINOP or a FINRA Series 28 introducing Broker-Dealer Financial Operations Principal is required for every broker-dealer. A FINOP is in charge of a FINRA member firm’s books and records, as well as the filing of all financial regulatory filings and ensuring compliance with industry net capital regulations and related legislation.
The FINOP duty can be performed by a suitably registered Series 27/28. Many advantages exist for a FINRA member firm that outsources the FINOP job. Rather than hiring a full-time employee, a firm can hire an experienced FINOP Consultant and get top-tier talent for a fraction of the cost of retaining the position in-house. ARG can take over your broker-FINOP dealer’s obligations or assist your in-house FINOP with financial duties such as FINRA/SEC/SIPC regulatory filings. In various situations, ARG might also serve as the Chief Financial Officer.
Principal Operations Officer
A PFO and POO must be designated by all FINRA member firms. ARG will nominate a qualified series 27/28 licensed professional as your firm’s PFO and/or POO, with main responsibility for overseeing your broker-day-to-day dealer’s operations. This includes supervising assigned personnel, overseeing the receipt and delivery of securities and funds, safeguarding customer and firm assets, calculating and collecting margins from customers, and processing dividend receivables and payables, as well as the books and records associated with such activities.
Broker-Dealer Compliance
FINOP, Broker-Dealer compliance specialist, Chief Financial Officer, and Chief Compliance Officer are just a few of the financial management and regulatory compliance jobs that RND Resources can cover for you.
- Our series 27 license, Financial and Operations Principal qualifies you to register as a FINOP
- Net capital computations and compliance in the FOCUS Report
- SSOI Form Custody Reports and Supplemental Statement of Other Income
- AI Aggregate Indebtedness Schedule
- Evaluation and Analysis of Hair Cuts
- Annual NASD Assessment Report by FINRA
- Financial Notifications from FINRA
- Serve as the principal point of contact for regulators with questions about financial reporting
Is There a Benefit to Outsourcing Financial Operations?
The cost of employing a skilled salaried FINOP is rapidly increasing as companies compete for a limited number of qualified applicants with the required knowledge and experience. Because they cannot afford the salaries and opportunities afforded by larger organizations, small and mid-sized businesses suffer the brunt of the strain. While FINOPs salaries are rising, the work involved in managing FINOPs duties is still often part-time for most small to mid-sized businesses. Broker-dealer compliance specialists are needed for broker-dealer startups.
FINOPs is The Responsibility of Which Department?
It involve people from various departments and levels in terms of predictions, revenue recognition, and A/R management.
“If you’re unsure what your FINOP department is, consider this: who were the people to whom you asked inquiries about the company’s financial health? Who did you turn to when you needed financial operational advice? Those are the members of your FINOPs squad.”
What is The Need for FINOP?
Subscription management, revenue and expense recognition, and SaaS and financial metrics reporting are all tasks that a FINOPs team handles. For early-stage SaaS startups looking to impress investors, mature companies looking to maintain continuous growth, and everyone in between, these practices are essential.
Challenges of FINOP
However, the manual processes that this arrangement necessitates result in financial records that are inaccurate or wrong. You’ve created FINOPs debt before you realize it. The holes in your system eventually turn into an organizational nightmare, and you have no idea how to get out of it while keeping your firm functioning.
Model of FINOP Maturity
FINOPs are fundamentally iterative, and with practice, the maturity of any given process, functional activity, capability, or domain will improve. Typically, a “Crawl” stage organization is very reactive and focused on resolving issues after they occur. Whereas a “Run” stage organization considers cost in advance of architectural design decisions and ongoing engineering operations. A “Crawl, Walk, Run” maturity approach to FINOPs allows firms to start small and expand scope. And complexity as business value dictates. FINOPs teams can examine the consequences of their activities. And obtain insights into the worth of taking further action in a larger. Faster, or more granular fashion by taking swift action on a modest scale and with a limited scope.
