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, civil 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:

RELATED FAQS

  1. I have already obtained my Series 7; however, I am no longer working for a member ...

    According to the Financial Industry Regulatory Authority or FINRA, (previously the National Association of Securities Dealers ...
  2. How can I find out if my employer is a member of FINRA?

    To find out if your employer is a member of the Financial Industry Regulatory Authority or FINRA (previously the National ...
  3. How does FINRA differ from the SEC?

    With all the financial organizations out there, knowing what they all do can be as complicated as knowing where to invest. ...
  4. How long will my Series 7 license last after my employment has been terminated at ...

    According to the Financial Industry Regulatory Authority (formerly the National Association of Securities Dealers), you have ...
  5. Is it possible to take the Series 7 exam without being sponsored?

    Unfortunately, the answer is "No." The Financial Industry Regulatory Authority or FINRA, (formerly the National Association ...
  6. I have a CFA designation. Do I qualify for any exemptions from FINRA licensing exams?

    Unfortunately, a CFA charter does not qualify you for any FINRA exam exemptions.
RELATED TERMS
  1. Financial Industry Regulatory Authority - FINRA

    A regulatory body created after the merger of the National Association ...
  2. Rules Of Fair Practice

    A set of rules and regulations developed by the National Association ...
  3. Comprehensive Automated Risk Data System (CARDS)

    The Comprehensive Automated Risk Data System (CARDS) is an initiative ...
  4. National Association Of Securities Dealers - NASD

    The NASD was a self-regulatory organization of the securities ...
  5. Series 11 License - Assistant Representative - Order Processing

    A securities license, administered by the Financial Industry ...
  6. Series 27

    A securities license entitling the holder to become a chief financial ...
Hot Definitions
  1. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  2. Portfolio Investment

    A holding of an asset in a portfolio. A portfolio investment is made with the expectation of earning a return on it. This ...
  3. Treynor Ratio

    A ratio developed by Jack Treynor that measures returns earned in excess of that which could have been earned on a riskless ...
  4. Buyback

    The repurchase of outstanding shares (repurchase) by a company in order to reduce the number of shares on the market. Companies ...
  5. Tax Refund

    A tax refund is a refund on taxes paid to an individual or household when the actual tax liability is less than the amount ...
  6. Gross Domestic Product - GDP

    The monetary value of all the finished goods and services produced within a country's borders in a specific time period, ...
Trading Center