Is there any rule or regulation that prohibits a broker/dealer from outsourcing FINOP services?
No. Any broker/dealer may hire an off-site FINOP. Outsourcing FINOP work not only satisfies regulatory requirements, but often makes more sense for many broker/dealers. The FINOP, however, even if located off-site, is ultimately responsible for the broker/dealer’s books and records. The issue is not whether the FINOP is off-site, but whether adequate controls are in place to ensure accurate books and records and timely financial reporting.
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- Is there any rule or regulation that prohibits a broker/dealer from outsourcing FINOP services?
