Broker-Dealer Compliance

Mission Critical Services' Broker-Dealer Compliance Services provides top level assistance through extensive compliance and legal experience. The compliance and legal experts at Missoin Critical Services ("MCS") have developed methodologies to offer CCO outsourcing and consulting that assist broker-dealers: design and restructure processes, streamline compliance policies and procedures, adhere to rules and regulations and regulatory guidelines and improve the implementation of compliance programs. The following is a “non-exclusive list” of general compliance services that MCS provides. Other compliance services may be performed by MCS, as necessary or as requested by the client. 

  • Compliance Program Design & Restructuring. MCS will mitigate your regulatory risks by designing and/or restructuring a compliance program that fits your business based on an independent risk assessment, gathering an inventory of your compliance obligations, and conducting a gap analysis mapped to your Written Supervisory Procedures. 
  • Written Supervisory Procedures. Broker-dealers are required to maintain proper corporate governance documents including a Written Supervisory Procedures manual. MCS professionals will modify and/or update your Written Supervisory Procedures in conformance with your business activities and inventory of your compliance obligations, as well as the ever-changing laws, rules, regulations and regulatory guidelines issued by regulators.
  • Mock Regulatory Examinations. MCS will conduct a mock regulatory examination of your broker-dealer, visit your broker-dealer’s primary and satellite offices; schedule interviews of key personnel as well as Principals, conduct sophisticated compliance testing on books and records likely to be requested by a regulator, and prepare a written report of findings upon request.
  • Marketing Activities & Advertisement Reviews. FINRA requires retention of copies of each notice, circular and advertisement. MCS will analyze all existing and proposed advertising materials (including your company’s website, blog and/or social media profile pages) and provide written comments and suggested revisions to ensure advertising materials are in accordance with the advertising rules and standards required by FINRA and the SEC. MCS will review all marketing activities to determine if your activities are consistent with regulatory rules as well as your Written Supervisory Procedures.
  • CRD Administration. MCS will support regulatory filings and amendments including amendments to Form U-4 and the filing of Form U-5 of registered representatives; state notice filings; and perform an annual review of broker-dealer registration renewals.
  • New Membership Applications.  MCS assists organizations in becoming approved with FINRA. We are experts at navigating the NMA process. We develop the appropriate business plans, WSPs, AML manuals, Business Continuity Plans and the remainder of the vast set of documents required for FINRA approval. Working with MCS will help your firm start generating revenue. 
  • Continuing Membership Applications. MCS helps guide your firm through the CMA process to provide the best guidance to make the process as seamless as possible.
  • Regulatory Filing Support. MCS will provide additional assistance as needed with preparing and submitting regulatory filings via FINRA’s Gateway system including FOCUS, SSOI and customer compliant disclosure filings. 
  • Continuing Education Program. MCS will conduct a needs analysis and prepare a customized compliance training program and presentation for registered representatives and other associated persons and hold compliance training sessions through on-site visits and/or by webinar. 
  • Annual Review/Compliance Assessment. MCS will conduct the annual compliance review pursuant to FINRA Rule 3120 and prepare a report to the member's senior management that details your broker-dealer’s system of supervisory controls, a summary of the test results, and any additional or amended supervisory procedures that have been created in response to those results.
  • Regulatory Examinations. When your broker-dealer is examined by FINRA and/or the SEC, MCS will serve as point person to the regulators by participating in interviews, corresponding in writing with regulators and assisting with document requests and deficiency letter writing. MCS will gather requested documents pursuant to regulatory examination request letters, review the documents for completeness and organize the documents in examination format for easy inspection by a regulator.
  • Compliance Calendar. MCS will prepare a customized, detailed compliance calendar listing what must be filed with whom and when. The calendar includes all the steps necessary to adequately implement the compliance program. We also will hold monthly compliance calls to discuss the compliance calendar.
  • Cybersecurity. MCS develops Written Supervisory Procedures & checklists to update compliance manuals for broker-dealers to keep in line with regulatory requirements for protecting personally identifiable information for broker-dealer clients. MCS also conducts staff training and compliance testing with respect to cybersecurity. 
  • Branch Office Supervision. MCS develops Written Supervisory Procedures which are tailored to broker-dealer branch offices and includes them in the WSP Manual. Also, MCS performs reviews to ensure that appropriate procedures unique to remote/branch offices are being followed.  
  • Email & Instant Message Surveillance. MCS will conduct surveillance reviews of emails and instant messages in accordance with regulatory rules and guidelines. Our reviews are memorialized in Compliance memoranda to demonstrate to regulators that the reviews were conducted and include a discussion of any potential “red flag” emails and social media communications.
  • FinCEN 314(a) Searches & OFAC Checks. MCS will serve as AML officer responsible for your broker-dealer's AML compliance program. We will also be responsible for the implementation of your AML program and AML manual including conducting new account opening reviews, OFAC checks and FINRA 314(a) searches.
  • AML Audits. MCS can perform independent AML Audits to help your firm comply with the annual requirements.
  • Contract Review. MCS will review existing and new contracts to determine the impact on the broker-dealer's compliance program and Written Supervisory Procedures and ensure adherence to contractual obligations.
  • New Account Opening. MCS will assist the front and back office in supporting the new account opening progress including the preparation of a checklist of documents that are required to be maintained and follow up with the relevant individuals and clients to obtain all necessary documentation.
  • Broker-Dealer Agreement Updates. MCS can review and update agreements/contracts for your broker-dealer services including Broker-Dealer Agreements, Solicitor Agreements and others to ensure that provisions required by FINRA and the SEC are included or provisions prohibited by laws, rules and regulations are excluded.
  • Regulation S-P Testing. MCS will examine your broker-dealer’s infrastructure and processes to analysis how you manage non-public customer account information and determine data and whether you comply with Regulation S-P and your privacy policy and prepare an audit report detailing our findings. 
  • Employee Trading. MCS will independently obtain and review personal brokerage account statements of all required individuals to determine if personal trading activities are in compliance with Written Supervisory Procedures including any restricted/watch lists maintained by the broker-dealer.
  • Outside Business Activities/Conflict of Interest Review: MCS will conduct a conflict of interest review and monitor all OBA activities of individuals to determine if such activities are in compliance with FINRA rules and the Written Supervisory Procedures.
  • Undisclosed Disciplinary Action Reviews. MCS can help research and confirm whether any supervised persons have not disclosed disciplinary history.
  • Business Continuity/Disaster Recovery Plans. Regulators impose scrutiny on broker-dealers to ensure that client information and investments are protected in the event of a significant business disruption. MCS can develop plans to maintain effective business operations under the circumstances.