Who We Help

Online Broker-Dealer Compliance and Operations

Built for Disrupters in the Digital Space:

  • Extensive BD launch expertise in online trading and brick-and-mortar
  • Fast moving go-to-market deployment, while covering all the bases
  • Outsourced staffing at all levels (analyst, manager, CCO and FINOP)
  • Technology neutral
  • Pay-as-you-grow pricing structure leverages short-term and long-term compensation incentives

Well Versed in Online Compliance Complexities

InnReg is uniquely positioned to support innovation in the brokerage and online trading space. We have advised several startups since our inception in 2013. This includes 2 traditional brokerage firms and 3 online BDs. In addition, Francesco Matteini, our founder and CEO, helped launch TradeKing and Zecco as their in-house CCO. Under his watch these two companies were successfully launched and then merged into one of the largest online brokers with half a million traders and almost $3 billion in assets.

Online BDs face distinct regulatory challenges compared to traditional brick-and-mortar players. This is not just a different delivery vehicle. The digital trading platform is an integral part of the product that’s as important to the value proposition as the stocks, ETFs and options offered for trading.

At InnReg we work with online BDs in three key areas:

  1. We help determine the best regulatory structure based on your business model, technology and user acquisition strategy. And then we take the lead in articulating the unique nature of your business to the regulators.
  2. We develop and manage your compliance and operational workflows to efficiently manage high volumes in user onboarding and transaction processing.
  3. We take ownership of your compliance and back office operations on a fully outsourced basis, allowing you to focus on developing your product and acquiring users.

We can leverage your current platform. Or recommend the best technology stack to fulfill all your compliance and back office needs, both effectively and cost efficiently. The final recommendation often integrates proven third-party solutions into your proprietary technology to achieve the optimal result. All of our systems and databases are cloud-based, so your team has easy access day or night from onsite or remote locations. 


Online Broker-Dealer Compliance Services

Outsourced compliance:

  • Executive level: CCO (chief compliance officer) and FINOP (financial operations principal, Series 27 license)
  • Manager level: staff to support in-house CCO
  • Fully managed: complete team provides compliance department in-a-box

Information security procedures:

  • Processes and safeguards
  • Best practices based on regulatory feedback

Suspicious activity detection, monitoring and reporting:

  • PSAR and SAR management and filing
  • AML compliance
  • Fraud prevention
  • Identity theft, including Red Flag programs

Marketing, advertising and content compliance:

  • Marketing plan review resolves any compliance issues prior to execution
  • Content review for all online and offline messages, including social media

FINRA compliance facilitator:

  • New membership application
  • Broker-dealer registration
  • FINRA broker check
  • Business expansion (CMA)
  • Exams, audits and regulatory filings
  • Information requests

Vendor compliance:

  • Vendor due diligence
  • Performance monitoring

Suitability reviews:

  • Online recommendations/advice compliance
  • Self-directed trading activity
  • At-risk client profiles

Staffing compliance:

  • Individual registrations
  • Outside business activities

Operations Services

New client onboarding and application approval:

  • Client identification (CIP/KYC/CDD/AML checks)
  • Exception management and additional due diligence on CIP kick-outs

Account funding and funds transfer supervision:

  • Funding source verifications
  • Withdrawal request processing

Trading supervision and reporting:

  • Execution reviews for best practices
  • OATS reporting and monitoring

Electronic books and records management:

  • Cloud-based document creation and management
  • Templates and methods based on best practices

Case Studies

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Launch a revolutionary new equity stock trading platform Launch a US-based brokerage arm for an established BD in South America

Reach out today for a Complimentary Consultation.

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