Financial and Operations Principal Responsibilities

What this video covers

• What a Financial and Operations Principal (FINOP) is, and why the role is strictly a broker-dealer firm-level function rather than customer-account-level work
• The FINOP's final responsibility for preparing, approving, and guaranteeing accuracy of regulatory financial reports submitted to securities industry regulatory bodies
• How the FINOP supervises people who assist with report preparation and those who maintain the source books and records from which reports derive
• The FINOP's duty to supervise and perform the broker-dealer's obligations under all financial responsibility rules adopted under the Exchange Act
• Why the FINOP has overall supervision of and responsibility for back-office personnel who administer and maintain broker-dealer operations
• The exam trap of treating net-capital work and reserve-formula work as stages in a prescribed workflow, and why they are separate parallel duties instead
• How to distinguish FINOP responsibilities from individual customer account service when the exam baits you with client-specific scenarios