Becoming a FINRA Member Firm: Understanding the New Membership Application Process

Broker-Dealer Regulation and Compliance Team Co-Head Jennifer Connors was quoted in a Kroll article discussing the intricacies of the Financial Industry Regulatory Authority (FINRA) new member application (NMA) process. Ms. Connor broke down the complexity of this process, often the most challenging aspect of entering the securities industry, and highlighted steps such as the electronic submissions process through the Central Registration Depository (CRD). She recommended leveraging the knowledge of consultants and legal adviser to efficiently navigate these requirements, and she pointed out that successful registration involves not just submitting an application but also understanding the detailed documentation and compliance standards necessary to operate within the industry.

"The FINRA NMA process is by far the most daunting aspect of forming a new broker-dealer. This application, along with registration with the SEC on Form BD and licensing of individuals, is accomplished through a detailed electronic submission process, so applicants will need to enroll to access the electronic system known as the Central Registration Depository (CRD). It can be helpful to partner with consultants and legal advisers who know how to navigate the NMA process," she said.

READ: Becoming a FINRA Member Firm: Understanding the New Membership Application Process