Frequently Asked Questions

Below are answers to questions we frequently receive about broker dealer financial regulatory compliance, FINRA and SEC regulations, and Series 27 FinOp services.  If your question does not appear below or the answer is not satisfactory, please contact us.

A FinOp is a Financial and Operations Principal, an individual who has passed a qualifying exam from the FINRA (Financial Industry Regulatory Authority). For securities businesses, FinOps assist with regulatory and reporting requirements, which are necessary to comply with FINRA and SEC rules.

For those in the securities business, on a periodic basis broker/dealers are required to file certain reports, such as a FOCUS (Financial and Operational Combined Uniform Single) report, among others. One or more of these reports must be prepared by a licensed Series 27 or Series 28 FinOp.

Most small businesses outsource their FinOp responsibilities to ensure the FINRA requirements are met while keeping costs down.  Hiring an outside FinOp company, such as Rubicon Consulting Group, can do the following:

  • Save your organization time and money;
  • Greatly reduce the risk of noncompliance;
  • Enable offsite financial data backups; and
  • Keep your opportunity costs down.

Only a licensed FinOp is permitted to prepare FOCUS reporting for companies engaged in the securities business. There are two types of limited principal qualifications issued by the FINRA that allow individuals to act as FinOps:

  1. Series 27 (Financial and Operations)—required for companies that operate to the $100,000 (or greater) minimum net capital requirement.
  2. Series 28 (Introducing Broker/Dealer Financial and Operations)—required for companies that operate to the $50,000 (or less) minimum net capital requirement.

Ed Smith, the managing director of Rubicon Consulting Group, has been working in the securities industry for more than 20 years, offering FinOp services to broker/dealers in the United States.

From registering with the FINRA as the firm’s Series 27 FinOp to researching rules, facilitating financial filings, preparing for audits, computing net capital, and more, Rubicon Consulting Group provides a suite of comprehensive broker/dealer consulting services to domestic clients.

Compliance is an ongoing process that requires dedicated oversight, knowledge of the rules, ability to research issues, and having a pulse on the firm’s business model.  Rubicon Consulting Group comes to the table with the necessary skill set to make your business run smoothly.

Rubicon Consulting Group produces the following reports on a monthly/quarterly/annual basis, depending on the clients’ needs and compliance requirements:

  • FOCUS (Financial and Operational Combined Uniform Single report)
  • SSOI (Supplemental State of Income)
  • Form Custody
  • Schedule 1 (filed calendar quarter ending December 31)

Located in Scottsdale, Arizona (a suburb of Phoenix), Rubicon Consulting Group primarily serves the West Coast, with an outreach from coast to coast including San Francisco and New York City.

Depending on the client’s needs and location—assuming there is complete access to the firm’s books and records—services can be performed entirely off-site, or shared between off-site and on-site visits.

Each client engagement is priced individually, either by the hour or as a flat retainer.  Contact Rubicon Consulting Group to schedule an appointment for a free consultation.

Rubicon Consulting Group is located in Scottsdale, Arizona, a suburb of Phoenix.

To learn more about securing a licensed FinOp for your business, understanding broker/dealer financial regulatory compliance, or to schedule a consultation, please contact Rubicon Consulting Group electronically or by calling (415) 246-7502.