FINRA Membership and Continuing Membership

What this video covers

• Why SEC registration alone is not enough for a broker-dealer to transact securities business, and what FINRA's Membership Application Program (MAP) Group actually verifies
• The 14 Standards of Admission and why the applicant bears the burden of proof on every single one, with a tie going to denial
• How insufficient net capital projections, missing surety bonds, or inadequate clearing arrangements can sink a New Member Application (NMA) even when all other standards are met
• The three CMA triggers: merger, acquisition of another member, and 25% or more equity ownership change by a single person or entity
• Why a pooled investment where no individual holds 25% does not trigger a Continuing Membership Application (CMA), while one private equity firm acquiring 26% does
• The critical timing distinction: ownership/control changes require 30-day advance filing but may close before FINRA review ends, while material business changes may file anytime but cannot take effect until review concludes
• Why the executive representative must be a registered principal, not merely an officer or unlicensed professional
• FINRA's 2-year retention of jurisdiction over member firms and associated persons after membership termination or resignation