FINRA New Membership Application Business Plan

Summary

This FINRA Membership Business Plan template has been designed to assist counsel in drafting and customizing a business plan for their broker-dealer clients in order to complete the requirements of the Financial Industry Regulatory Authority's (FINRA) New Membership Application (Form NMA). This template includes practical guidance, drafting notes, alternate clauses, and optional clauses. FINRA previously required a broker-dealer to provide a separate business plan with its NMA. However, Section I ("General Information") of Form NMA now requires information on the applicant's business plan, and a separate business plan is not required. Nevertheless, it is still prudent to include a free-standing business plan as an attachment to the NMA to provide the pertinent information to FINRA's membership team in one comprehensive document rather than dispersed throughout the Form NMA. See FINRA’s Standards for Admission; also, in 2023 FINRA published “Guidance for New Member Applications.” The business plan should address five general areas: present and projected financial condition; a marketing plan; organizational structure; present and future sources of capital; and technology to be employed. For a checklist to use in preparing a business plan, see Broker-Dealer Business Plan Checklist. For additional information on FINRA's membership rules and procedures, see FINRA Resource Kit, and FINRA Membership: Becoming a Member. Due to the coronavirus pandemic (COVID-19), FINRA provided temporary relief for member firms from certain rules and requirements. See FINRA's COVID-19 page. Each member firm must document its reliance on any temporary relief provided by FINRA from obligations in rules or requirements during the COVID-19 pandemic (e.g., the member firm should document any new procedures that vary from its current written supervisory procedures). This relief does not extend beyond the identified rules and requirements. FINRA will continue to monitor the situation to determine whether additional guidance and relief may be appropriate. As coronavirus-related risks decrease, member firms should expect to return to meeting any regulatory obligations for which relief has been provided. When appropriate, FINRA will publish a Regulatory Notice announcing a termination date for the regulatory relief that will provide member firms with time to make necessary operational adjustments.