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:

RELATED FAQS

  1. 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 ...
  2. 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. ...
  3. What are the SEC (Securities And Exchange Commission) rules about OTC (over-the-counter) ...

    Find out how the Securities and Exchange Commission and the Financial Industry Regulatory Authority regulate trades on the ...
  4. If my employment with my current firm terminates relatively soon, do I have two years ...

    Yes. When your employment ends with the current firm, your registration with the Financial Industry Regulatory Authority ...
  5. Am I qualified once I complete my FINRA certification exam?

    Even if you have completed your Financial Industry Regulatory Authority or FINRA (previously the National Association of ...
  6. 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 ...
RELATED TERMS
  1. Financial Industry Regulatory Authority - FINRA

    A regulatory body created after the merger of the National Association ...
  2. Series 11 License - Assistant Representative - Order Processing

    A securities license, administered by the Financial Industry ...
  3. NASD Rule 2790

    A ruling passed by the National Association of Dealers (NASD), ...
  4. Trade Reporting And Compliance Engine - TRACE

    A program developed by the National Association of Securities ...
  5. Corporate Financing Committee

    A regulatory group that reviews documentation that is submitted ...
  6. Compliance Registered Options Principal - CROP

    A supervisory and compliance position that FINRA required of ...
Hot Definitions
  1. Derivative

    A security with a price that is dependent upon or derived from one or more underlying assets.
  2. Fiduciary

    A fiduciary is a person who acts on behalf of another person, or persons to manage assets.
  3. Sharpe Ratio

    The Sharpe Ratio is a measure for calculating risk-adjusted return, and this ratio has become the industry standard for such ...
  4. Death Taxes

    Taxes imposed by the federal and/or state government on someone's estate upon their death. These taxes are levied on the ...
  5. Retained Earnings

    Retained earnings is the percentage of net earnings not paid out as dividends, but retained by the company to be reinvested ...
  6. Demand Elasticity

    In economics, the demand elasticity refers to how sensitive the demand for a good is to changes in other economic variables. ...
Trading Center