1.1.1.2.2. Filed Electronically
Once the hard copy forms have been filed and accepted, FINRA will grant access to additional application forms that must be filed electronically using FINRA Gateway. Additionally, Form BD will now appear in electronic form in the firm’s FINRA Gateway account, where it may be amended electronically if any of the information disclosed on the form becomes outdated. If the firm is eventually accepted for FINRA membership, its Form BD will stay with it throughout its time as a member firm. The information in Form BD will need to be reviewed periodically and kept up to date.
The forms that must be filed electronically at this stage of the application process include:
New member agreement (Form NMA). On the NMA, the applicant identifies its ownership and organizational structure (from Form BD), its intended business activities, its settlement and clearing procedures, and its communications and operations systems. The applicant must identify every associated person in the firm and their responsibilities and disciplinary history, as well as all other personnel and consultants. It must compute its net capital; provide a balance sheet, projected expenses, and revenue for the first year; and identify the nature and source of its capital. It must provide the names of its accountant and auditor and the amount of its fidelity bond coverage. It must provide information from its business continuity plan, including the location of its data backup system and alternate communications plans for customers and employees. It must identify the addresses of all branch offices, the persons in charge, and their business activities. It must identify its recordkeeping system and the technology used; if using a service bureau, it must provide the bureau’s name and identify the records it will create and maintain.
Business plan. A business plan must be attached to the NMA. This plan must document the applicant’s present and future financial po