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
SUMMARY: 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
