Broker Dealer Formation

Having structured and launched numerous investment firms, we know that the formation stage is rife with complexity — particularly now in a time of heightened regulatory scrutiny.

As a trusted partner in the process, our regulatory lawyers are able to provide value-added guidance on the initial considerations relating to corporate and tax structure, seed investments and ongoing capital arrangements. With an entity under way, we move on to registration and membership requirements, applications and subsequent coordination with the SEC, CFTC, FINRA, NFA and state regulators.

The most critical aspects of formation involve the development and implementation of robust compliance policies and procedures. These programs, the insurance and assurance between the broker-dealer and its clientele, are the key differentiators in broker-dealer marketing, business development, customer relationships and strategic alliances. They are also the best way to insulate the firm from regulatory inquiry and preserve the investment professional’s most precious asset — reputation.