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Independence Without the Burden

Benefits of Transitioning from a Small Broker-Dealer to a Super OSJ

12 Apr 2017
Benefits of Transitioning from a Small Broker-Dealer to a Super OSJ

Once you've transitioned from a broker-dealer to a super OSJ, you'll no longer need to worry about these responsibilities...

  • Final review, maintenance, tracking and FINRA filing of advertising and marketing materials
  • Covering costs associated with clearing, agreement and clearing agreement deposits
  • Providing AML/CIP training
  • Annual audits by outside auditors
  • Paying broker-dealer registration (SIPC and FINRA) and state licensing expenses
  • Best execution
  • Processing commissions
  • Creating, reviewing and maintaining compliance questionnaires
  • Paying conference expenses
  • Covering the cost of continuing education and managing the program
  • Data reconciliation
  • Direct regulatory management

Or these...

  • Storing and retaining documents
  • Downloading data
  • E & O insurance policy
  • Fidelity Bond
  • Focus filings
  • Form B-D/Form ADV
  • Handling of return mail
  • Litigation, complaint, trade-error management or expense
  • Maintaining a red flag rules program (FTC/SEC)
  • Maintaining and creating ADV2B for advisors
  • Maintaining and updating client forms, agreements or disclosures

Not these...

  • Money manager due diligence
  • Net capital requirements
  • Political contribution disclosure, approval and maintenance
  • Privacy policy and mailings to clients
  • Performing product due diligence
  • Reduced operations expenses due to reduced processing
  • Reduced postage and printing
  • Regulatory restrictions on capitalization and withdrawal of ownership capital

Or even these...

  • Research services and quote service
  • Researching, resolving, reporting of client privacy breaches
  • Providing a risk management program (SEC)
  • Software systems (CRM, commission processing, broker-dealer back office)
  • Sarbanes-Oxley compliance
  • State tax liabilities concerning nexus of advisors/clients
  • Supervisory, surveillance trade monitoring system or reports
  • Tracking and implementing new broker-dealer home office regulatory requirements (including but not limited to WSPs, technology, forms, disclosure documents)
  • Updating and maintaining a supervisory program, policies and procedures

Which will leave you more time to...

  • Have fun and do what you really enjoy!
  • Help advisors build their practices through practice management and coaching
  • Develop a culture that attracts and retains top advisors
  • Help new advisors transition more quickly and smoothly
  • Update technology
  • Explore new ways to cut costs

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