Changing broker-dealer products, adding new representatives or branches, changing your firm’s ownership structure and other material changes require filing a Change of Membership Application (CMA) with FINRA, pursuant to NASD Rule 1017. Regulatory Compliance can guide you through this sometimes daunting process.
Precise CMA Application Process
If FINRA determines the change is not material, you may update the Form BD. If the change is material, you must file a CMA that addresses the same 14 standards as a new broker-dealer application, a time-consuming process. The application may include:
- a business plan outlining the change and its impact on your business
- financial projections reflecting the change in your business
- number of reps or new branches and how they will affect your revenues
- expenses and net capital
- supervisory procedures
- biographical information on new owners or supervisors
Recognized Expertise in CMAs
Regulatory Compliance’s experienced staff has performed numerous CMA requests in every FINRA district and has a clear understanding of regulators’ requirements. We complete the process and efficiently based on information from you and regulator responses.
To learn more about any of our compliance services, contact us or call (603) 434-3594.