The leading brokers will also compete on the basis of the different markets and types of products that their customers will be able to access through them. For example, if a broker wants to start trading on a new exchange or with a rare financial instrument, the bearer broker should be able to meet that demand. Introductory/transportation agreements are concluded to allow one member (the “introductory broker”) to use another member`s back-office facilities (the “carrier” broker). The services provided can include any combination of: to attract this activity, performing brokers must market themselves on the quality of their staff, their systems and their balance sheet. As in many companies, larger and more well-established transportation agents have an advantage over smaller and newer ones, which can be considered unproven. Part of the reason for this dynamic is that some of the activities transferred to exporting brokers can have serious legal and regulatory consequences, such as ensuring. B that customer accounts are not used for money laundering or other illicit products. Brokerage firms often rely on the port of brokers to focus on higher quality tasks, such as onboarding new clients or providing high-key support to existing clients. These client brokerage firms are sometimes referred to as “broker introduction. . 02 Reference to the new presentation of the business arrangement.
For the purposes of the publication requirements covered in paragraph b) paragraph 3 of this rule, the booking company provides a questionnaire as made available to FINRA in a communication, which may be updated from time to time, as FINRA considers necessary. .03 Due Diligence. For the purposes of paragraph b) (4) of this rule, the duty due diligence of the exporting company may include, without limitation, an investigation of the exporting company in the business model and product range of the company to be imported, ownership and customer positions, FOCUS and similar reports, verified accounts and claims and disciplinary data. On 23 March, the Financial Industry Regulatory Authority (FINRA) announced that it was retroactively revising FINRA Rule 4311, which governs implementation agreements. As part of its review, FINRA sought advice to determine the effectiveness and effectiveness of the rule. Carrying brokers employ employees and technologies that allow them to perform large-scale back-office work for a network of broker clients. Instead of imitating administrative bureaucracies similar to any broker, economies of scale can be achieved if these redundant administrative tasks are simply outsourced to a small group of transporting brokers. This gives their broker clients the opportunity to focus on revenue-generating activities. A door-to-door broker is a brokerage firm that provides back-office support for other brokers.
For example, compliance with legislation, the registration and distribution of client documents and monitoring of credit risk for marginal accounts are examples of this support. .05 Customer Notification. For the purposes of paragraph (d) of this rule, it is not necessary to notify the customer of an amendment to any of the parties to the transportation contract if, in accordance with current FINRA rules and federal securities laws, the accounts of these customers are transferred in accordance with the following conditions: (a) ACATS with an approved transfer instruction form (TIF); or b) a procedure outside ACATS in which customers are notified by another mechanism, such as positive or negative response.