FINRA Issues Organizational Deficiencies

Finra deficiences

FINRA recently issued Organizational Deficiencies in Web CRD to several member firms seeking corrections to responses provided in item 10A: Control Affiliates of Form BD.

Question 10A reads: “Directly or indirectly, does applicant control, is applicant controlled by, or is applicant under common control with, any partnership, corporation, or other organization that is engaged in the securities or investment advisory business?” affirmative responses prompt detailed information to be entered into Schedule D.

Only control affiliate entitles that are engaged in securities and/or investment advisory activities are reportable. Therefore, members are asked to amend the section to indicate whether the entities are engaged in securities and/or investment advisory activities and if the entities should be removed, to enter a termination date.

Jane Abramczyk