Approval of Change in Exempt Status
An exempt firm may not change its method of doing business in a manner that would change its exempt status or begin operations that would disqualify it from a continued exemption under the customer protection rule unless it has obtained FINRA’s prior written approval.
In deciding whether to approve or deny an application for a change in exempt status, FINRA will consider the firm’s type of business; the training, experience and qualifications of its associated persons; its procedures for safeguarding customer funds and securities; its overall financial and operational condition; and any other information considered relevant under the particular circumstances.
FINRA Rule 1020
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SUMMARY: Financial Responsibility Rules |
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SEC/SEA Rule |
Designation |
Purpose |
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Rule 15c3-1 |
Net Capital Rule |
Designates minimum net capital requirements for member firms: mutual fund brokers, $5,000; carrying firms, $250,000; dealers, $100,000 |
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Rule 15c3-3 |
Customer Protection Rule |
Requi |