Establishing a Supervisory and Compliance Framework for a FINRA-Registered Broker-Dealer
A U.S.-based broker-dealer operating a fully digital platform for private placements and M&A advisory engaged InnReg to develop and manage its compliance, supervisory, and financial operations programs.
The firm operates under FINRA registration, and its technology-driven model connects issuers, investors, and deal professionals through a centralized online platform that facilitates offering syndication, subscription processing, and investor communications in a regulated environment.
Objective
The client’s objective was to establish a comprehensive compliance and supervisory program that met FINRA and SEC regulatory standards while aligning with its technology-driven, platform-based operating model. The goal was to support the firm’s strategic growth in digital private placements and mergers and acquisitions advisory, so that compliance oversight and supervisory processes reflected its online deal execution and investor interaction workflows.
The engagement also included outsourced leadership in the roles of Chief Compliance Officer (CCO) and Financial and Operations Principal (FINOP) to provide coordinated oversight across compliance, supervision, and financial reporting.
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Challenges
The client faced the dual challenge of integrating traditional broker-dealer compliance obligations into a fully digital platform environment. As a technology-enabled broker-dealer offering both private placements and mergers and acquisitions advisory services through an online platform, the firm needed to adapt FINRA and SEC compliance standards to digital onboarding, communication, and transaction workflows.
Its regulatory obligations covered a wide range of activities, from anti-money laundering and advertising review to supervisory procedures, financial reporting, and vendor management. Coordinating these functions required both technical expertise and disciplined operational management. Additionally, the firm needed to respond to evolving regulatory expectations related to supervision, cybersecurity, and financial controls while keeping its compliance program aligned with its business model and staffing structure.
InnReg's Solution
InnReg implemented a structured compliance and financial management framework tailored to the firm’s digital operations and platform-driven business model. The engagement combined outsourced leadership with hands-on program development and execution across compliance, supervision, and financial operations.
Outsourced CCO and Compliance Team:
Provided a licensed Chief Compliance Officer and supporting consultants to oversee the firm’s day-to-day compliance and supervisory activities within its online platform environment.
Developed and maintained written supervisory procedures, AML and suspicious activity monitoring programs, and compliance calendars.
Managed firm and personnel registrations, continuing education requirements, and advertising material reviews.
Supported the development of vendor management, information security, and continuing education programs.
Regulatory Management and Oversight:
Prepared and maintained regulatory filings, books, and records.
Provided advisory input on product development and new business initiatives to mitigate regulatory risk.
Supported the firm in responding to FINRA and SEC examinations and inquiries.
Outsourced Financial Operations (FINOP):
Supplied a registered Financial and Operations Principal (Series 27) to manage the firm’s net capital computations, financial reporting, and operational compliance.
Prepared and submitted FOCUS, Supplemental Statement of Income, and Form Custody reports, and coordinated financial audits and regulator interactions.
Client Results
The engagement resulted in an operational compliance and supervisory framework adapted to the firm’s digital platform model and its obligations under FINRA and SEC rules. Regular filings, supervisory reviews, and financial reporting processes were established and maintained under InnReg’s oversight, integrating compliance workflows with the firm’s technology infrastructure to promote consistency across operations.
With outsourced CCO and FINOP support, the firm strengthened its ability to manage compliance and financial operations without expanding internal staff. The structure developed through this engagement provided practical alignment between the firm’s business activities and its regulatory responsibilities.
How Can InnReg Help?
InnReg is a global regulatory compliance and operations consulting team serving financial services companies since 2013.
We are especially effective at launching and scaling fintechs with innovative compliance strategies and delivering cost-effective managed services, assisted by proprietary regtech solutions.
