Quadrant Financial Group LLC has an experienced staff of Series 27 and 28 professionals and accountants who can serve as the Financial and Operations Principal (FINOP), Principal Financial Officer (PFO), and/or Principal Operations Officer (POO) on behalf of your broker-dealer, or act as the Chief Financial Officer of your Registered Investment Adviser. Alternatively, your firm can remain in charge of the financial and accounting department, and we can assist your internal employees with full accounting, record keeping, and regulatory matters.
Quadrant Regulatory Group provides FINOP services and regulatory accounting support for broker-dealers through experienced Series 27 and Series 28 professionals. Our team can serve as your firm’s Financial and Operations Principal (FINOP), Principal Financial Officer (PFO), and/or Principal Operations Officer (POO), or work alongside your existing financial personnel to support accounting, recordkeeping, regulatory reporting, and financial compliance.
Our FINOP professionals have decades of experience in regulatory accounting and working with FINRA, the SEC, independent auditors, and broker-dealers operating across a range of business lines. We understand that each firm’s financial structure, net capital requirements, reporting obligations, and internal resources are different, so our FINOP and accounting services are tailored to the specific needs of the firm.
For broker-dealers that do not require a full-time internal FINOP, outsourcing can provide access to experienced regulatory professionals without adding another full-time position. Firms with established accounting teams can also use Quadrant to supplement their internal resources with specialized FINOP and regulatory accounting expertise.
What Are FINOP Services?
FINOP services support the financial and operational responsibilities broker-dealers must manage as part of maintaining regulatory compliance.
A Financial and Operations Principal oversees important aspects of a broker-dealer’s financial reporting, books and records, net capital compliance, regulatory filings, and related operational responsibilities. Depending on the firm’s structure and applicable registration requirements, these responsibilities may be performed by appropriately qualified Series 27 or Series 28 professionals.
FINOP services can include:
- Net capital computations
- Monthly or quarterly FOCUS reporting
- SSOI filings
- Form Custody filings
- SIPC reporting
- General ledger preparation
- Trial balances
- Balance sheets and income statements
- Bank and clearing firm reconciliations
- Review of expense-sharing arrangements
- Annual financial audit assistance
- Communication with FINRA staff
- Periodic financial reviews with senior management
FINOP work is more than traditional bookkeeping. It requires an understanding of the regulatory financial requirements that apply specifically to broker-dealers and the ability to maintain accurate records while identifying potential financial compliance concerns.
For a deeper explanation of the role, read our guide to FINOP services and why they are essential for broker-dealers.
Series 27 and Series 28 FINOP Professionals
The FINOP function requires specialized knowledge of broker-dealer financial and operational requirements.
Quadrant has experienced Series 27 and Series 28 professionals and accountants who can serve in FINOP roles on behalf of broker-dealers. Our team has experience supporting firms engaged in business lines including private placements, mergers and acquisitions, proprietary trading, agency and riskless principal trading, firm commitment underwriting, and non-U.S. broker-dealer chaperoning.
The appropriate FINOP structure depends on the broker-dealer’s activities and registration requirements. Quadrant works with each firm to understand its business model, financial operations, existing personnel, and regulatory obligations before establishing the appropriate level of support.
Our team includes professionals with extensive hands-on experience serving as FINOPs, CFOs, PFOs, and POOs for registered broker-dealers. Learn more about the financial and regulatory professionals at Quadrant.
Outsourced FINOP Services for Broker-Dealers
Not every broker-dealer requires a full-time FINOP employee.
For firms with limited headcount or a FINOP workload that does not justify another full-time position, outsourced FINOP services can provide a flexible way to access specialized financial and regulatory expertise.
Quadrant can serve directly as the firm’s FINOP, PFO, and/or POO while coordinating with senior management, compliance personnel, accountants, auditors, and other relevant parties.
Outsourced FINOP support may be particularly useful for:
- New and emerging broker-dealers
- Small and mid-sized broker-dealers
- Firms with limited internal accounting personnel
- Broker-dealers seeking specialized regulatory accounting expertise
- Firms preparing to expand their business activities
- Organizations that need additional FINOP support without hiring another full-time employee
An outsourced model does not eliminate the need for close communication with the firm. Effective FINOP support requires a thorough understanding of the broker-dealer’s activities, financial condition, reporting requirements, and operational changes.
Firms evaluating the two structures can read our detailed comparison of outsourced FINOP vs. in-house FINOP services.
FINOP Regulatory Filing Services
Timely and accurate regulatory reporting is a central part of the FINOP function.
Quadrant can prepare required broker-dealer financial reports based on the firm’s applicable filing obligations and net capital requirements. Our FINOP professionals can also respond to regulatory inquiries concerning those filings and work with firm personnel to address questions or discrepancies.
FOCUS Reporting
Quadrant can prepare and submit monthly or quarterly Financial and Operational Combined Uniform Single (FOCUS) Reports based on the firm’s reporting requirements.
Preparing a FOCUS Report requires accurate and current financial information. Our team works with the firm’s financial records to support timely reporting and identify issues that may need to be addressed before filing.
Net Capital Computations
Broker-dealers must maintain compliance with applicable net capital requirements.
Quadrant can perform net capital computations as part of ongoing FINOP services, helping firms monitor their financial position and identify potential concerns before they develop into larger compliance issues.
For applicable firms, our team can also prepare haircut calculations and inventory schedules.
Additional Regulatory Filings
Depending on the firm’s requirements, Quadrant can assist with filings including:
- Supplemental Statement of Income (SSOI)
- Form Custody
- SIPC reports
- Other applicable financial and regulatory reports
Our FINOP professionals can also act as a liaison with FINRA staff regarding financial filings and related regulatory inquiries.
Broker-Dealer Accounting and Financial Recordkeeping
Accurate books and records are fundamental to broker-dealer financial compliance.
Quadrant provides broker-dealer accounting and recordkeeping services designed around the financial reporting requirements of regulated firms.
Our team can prepare and maintain:
- General ledgers
- Trial balances
- Balance sheets
- Income statements
- Bank reconciliations
- Clearing firm reconciliations
- Supporting financial schedules
We review relevant assets, liabilities, revenue, expenses, financial commitments, and expense-sharing arrangements and communicate with appropriate firm personnel to keep financial information current.
Quadrant can also schedule periodic meetings with senior management to review the firm’s financial records, discuss changes to the business, and address issues that may affect financial reporting or net capital.
Expense-Sharing Agreement Reviews
Expense-sharing arrangements can have important implications for a broker-dealer’s financial books and records.
Quadrant’s FINOP professionals can review expense-sharing agreements and the treatment of applicable expenses as part of the firm’s broader financial and regulatory accounting process.
These reviews help ensure that the FINOP has an accurate understanding of the firm’s expenses, financial commitments, and arrangements with affiliated or third-party entities when preparing financial records and regulatory reports.
Annual Broker-Dealer Audit Support
Broker-dealers may be subject to annual financial audit requirements, creating another important point of coordination among the firm’s FINOP, management, and independent accountant.
Quadrant communicates directly with the firm’s independent financial auditor and provides requested financial information and supporting documentation. When necessary, our team can also assist with preparing financial statement notes and responding to questions arising during the audit.
Having organized and current financial records throughout the year can make the annual audit process more efficient and reduce the need to reconstruct information at year-end.
PFO and POO Services
FINOP support may extend beyond the traditional Financial and Operations Principal role.
Quadrant’s qualified professionals can serve as a broker-dealer’s Principal Financial Officer (PFO) and/or Principal Operations Officer (POO) when appropriate for the firm’s regulatory and operational structure.
This allows firms to obtain coordinated financial and operational principal support through a team that already understands the firm’s books and records, regulatory filings, net capital position, and business activities.
Our broader broker-dealer compliance services can also support firms with compliance program development, risk assessments and testing, policies and procedures, regulatory examinations, and ongoing monitoring.
FINOP Support for Firms With Internal Accounting Teams
Outsourcing does not require a broker-dealer to hand over its entire accounting function.
Firms can retain responsibility for their internal financial and accounting department while using Quadrant’s FINOP professionals to provide specialized support.
In this arrangement, Quadrant can work alongside internal personnel on:
- Regulatory accounting
- Financial recordkeeping
- Net capital computations
- FOCUS reporting
- Regulatory filings
- FINRA inquiries
- Audit preparation
- Financial compliance questions
This model can be useful for firms that already have capable accountants or finance professionals but need specialized experience with broker-dealer regulatory requirements.
FINOP Services for New Broker-Dealers
FINOP planning is also an important consideration for firms preparing to become FINRA members.
A prospective broker-dealer needs to demonstrate that it has the financial, operational, supervisory, and personnel infrastructure appropriate for its proposed business. Determining how FINOP, PFO, POO, accounting, and regulatory reporting responsibilities will be handled should therefore be considered early in the process.
Quadrant provides both FINOP services and FINRA membership application support, allowing our professionals to assist firms as they establish their regulatory infrastructure and continue supporting them after approval.
For new firms, developing the right financial processes from the outset can help create a stronger foundation for ongoing regulatory reporting, recordkeeping, and net capital compliance.
FINOP and Accounting Support for Registered Investment Advisers
Quadrant’s financial expertise is not limited to broker-dealers.
Registered investment advisers are generally subject to a different financial regulatory framework and typically are not subject to broker-dealer net capital requirements. However, accurate financial records remain important for SEC- and state-registered investment advisers.
Quadrant professionals can serve as a CFO or provide accounting support to an RIA’s existing financial team, including preparation of:
- General ledgers
- Trial balances
- Balance sheets
- Income statements
- Other financial records
This support can be coordinated with Quadrant’s broader regulatory and compliance consulting services.
Why Broker-Dealers Choose Quadrant for FINOP Services
Broker-dealer accounting requires more than general financial knowledge. It requires professionals who understand how financial records, regulatory reporting, net capital, audits, examinations, and business activities interact within a regulated securities firm.
Quadrant’s FINOP team brings experience in both financial accounting and securities regulation. Our professionals have worked directly with broker-dealers, FINRA, the SEC, and independent auditors and understand the practical demands placed on firms of different sizes and business models.
Our FINOP services are designed around the firm’s actual needs. Quadrant can serve directly in FINOP, PFO, and POO roles, supplement an internal accounting team, or provide broader regulatory and compliance support as the firm grows.
Talk to Quadrant About FINOP Services
If your broker-dealer needs an experienced FINOP, Series 27 or Series 28 professional, PFO, POO, or regulatory accounting support, Quadrant Regulatory Group can help determine the appropriate structure for your firm.
Contact Quadrant Regulatory Group to discuss your FINOP and accounting requirements. Our team can provide ongoing outsourced FINOP services or work alongside your existing financial personnel to support accurate reporting, recordkeeping, and regulatory compliance.
Frequently Asked Questions
FINOP services are financial and operational compliance services performed by a qualified Financial and Operations Principal for a broker-dealer. Depending on the firm’s needs, services can include net capital computations, FOCUS reporting, regulatory filings, financial recordkeeping, reconciliations, audit support, and communication with regulators.
A FINOP is responsible for important financial and operational functions within a broker-dealer. Responsibilities may include supervising financial books and records, monitoring net capital, preparing regulatory reports, maintaining accurate financial statements, coordinating with auditors, and responding to financial inquiries from regulators.
Series 27 and Series 28 are FINRA principal registrations associated with financial and operational responsibilities. Which qualification is appropriate depends on the type of broker-dealer and the activities conducted by the firm. Broker-dealers should evaluate their specific registration requirements when determining the appropriate FINOP structure.
An outsourced FINOP can serve eligible broker-dealers without the firm maintaining a traditional full-time internal FINOP position. Outsourcing can be particularly useful for smaller firms or broker-dealers that need specialized regulatory accounting expertise but do not generate enough FINOP work to justify another full-time employee. Firms can compare the considerations in our outsourced FINOP vs. in-house FINOP guide.
Look for professionals with appropriate FINRA qualifications, direct broker-dealer experience, knowledge of net capital and regulatory reporting requirements, experience preparing financial books and records, and familiarity working with FINRA, the SEC, and independent auditors. The provider should also understand your firm’s specific business model and be able to communicate regularly with management and internal compliance or accounting personnel.