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 without having 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.
NASD Rule 3140
Summary of Financial Responsibility Rules
SEC/SEA Rule
Designation
Purpose
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
