It is important to ensure that, when you are selling securities, you do so compliantly. Unless you fall under a limited exemption, your company has two options to consider: create your own internal broker-dealer, or outsource your compliance and representative supervision needs to an existing broker-dealer.
Creating your own broker-dealer offers a number of benefits, including building your own securities salesforce. However, those benefits come with added regulatory scrutiny, and major distractions from the day-to-day of running your business.
Registering as a broker-dealer means meeting a number of regulatory requirements, each of which comes with a cost. We break down those costs on a start-up and annually recurring basis to give you an idea what kind of financial commitment you can expect.
Bringing broker-dealer services in-house is not for everyone. Many companies will be better served by outsourcing compliance to a dedicated broker-dealer. Your company can receive the benefits of regulatory expertise and oversight while avoiding the cost and scrutiny of being a broker-dealer yourself.