Q:

Before you read on, note that the Financial Industry Regulatory Authority (FINRA), (previously the National Association of Securities Dealers (NASD), requires prospective members to strictly follow a lengthy application process. This includes providing the association with an extensive amount of information within a certain period of time, as well as attending an interview. As such, FINRA says it is extremely important for a prospective member to understand the requirements, rules and procedures before beginning the process.

According to FINRA Rule 1010, some items that must be submitted include:

  • Form BD
  • A FINRA-approved fingerprint card
  • A detailed business plan
  • Documentation of regulatory, cival or criminal actions
  • A description of the prospective member's financial and supervisory controls
  • A copy of final or proposed contracts with financial intermediaries
  • And Much More... For the full list, please refer to FINRA Rule 1010 for more information.

Once the required information has been submitted on time, the prospective member is then interviewed by its Department of Member Regulation. From there, the department decides whether or not to accept the application based on whether the prospective member meets the standards set forth in FINRA Rule 1014.

Click Here to read detailed instructions from FINRA on "How to Become a Member of the NASD".

A:

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