Frequently Asked Questions:

What are your qualifications and experience?
I have been a Registered Series 27 FINOP since 1998. I have been a licensed CPA in good standing in the State of Texas since 1996. During my FINOP career, I have provided services to over 20 Broker-Dealers across the United States and maintain a clean compliance record.

How is the data gathered?
Finop Solution clients use QuickBooks Online Version, which allows simultaneous access to accounting data for both Broker-Dealer personnel and remote Finop Solution. Paper files such as bank and clearing statements are faxed or emailed to Finop Solution for processing.

What tasks are performed by Broker-Dealer personnel?
Broker-Dealer will enter day-to-day transactions into QuickBooks. Generally, these transactions include checks, deposits, bills and invoices. If needed, Finop Solution will provide detailed written instructions to firm personnel who may be new to accounting or use of QuickBooks.

Isn’t the net capital computation prepared quarterly?
Although the net capital computation is electronically filed quarterly for most Broker-Dealers, the calculation must be performed monthly and kept on file in the Broker-Dealer office. Additionally, regulations stipulate that the Broker-Dealer must be in net capital compliance at all times. As your firm’s registered FINOP, we will frequently monitor your net capital, providing a high level of compliance assurance.

What happens if there is a violation of net capital requirements?
The goal of Finop Solution is to ensure this doesn’t happen. However, it is the responsibility of the Broker-Dealer to deposit capital contributions as advised. If this doesn’t happen, your firm can fall into net capital deficiency. As your registered FINOP, we are required to give immediate notification of net capital deficiency to stipulated regulatory bodies. In all cases, Finop Solution will strictly adhere to the requirements set forth by FINRA.

Do you use a written engagement agreement?
Yes, Finop Solution has a standard agreement that can be modified to cover the needs of individual Broker-Dealers. Included in this agreement is the understanding that either party is free to terminate the engagement at any time. Your firm is under no ongoing obligation to continue to use Finop Solution if not fully satisfied for any reason.

What about fees?
Finop Solution charges a flat monthly fee that covers all services described herein as well as any additional work that may be required by FINRA in the course of serving as a registered FINOP.