Broker / Dealer
COMMONWEALTH FINANCIAL NETWORK
Every financial services firm has to register with a broker/dealer. A broker/dealer is in charge of processing the investment business of all the financial professionals affiliated with it because the securities industry is so heavily regulated. Financial representatives can only have one broker/dealer to ensure that there is an established, clear chain of responsibility.
Commonwealth Financial Network®, Member FINRA/SIPC, is the second-largest, privately held independent broker/dealer in the nation. This organization is the unprecedented nine-time winner of Investment Adviser magazine’s Broker/Dealer of the Year Award. It had revenues of $492 million in 2007 with Assets Under Management at $50 billion. Commonwealth is registered in all 50 states and clears its transactions through National Financial Services, LLC a Fidelity Investments Company and Member NYSE/SIPC.
FINRA
The Financial Industry Regulatory Authority (FINRA), is the largest non-governmental regulator for all securities firms doing business in the United States. All told, FINRA oversees nearly 5,000 brokerage firms, about 172,000 branch offices and more than 676,000 registered securities representatives. Created in July 2007 through the consolidation of NASD and the member regulation, enforcement and arbitration functions of the New York Stock Exchange, FINRA is dedicated to investor protection and market integrity through effective and efficient regulation and complementary compliance and technology-based services.
SIPC
SIPC is an important part of the overall system of investor protection in the United States. While a number of federal, self-regulatory and state securities agencies deal with cases of investment fraud, SIPC's focus is both different and narrow: Restoring funds to investors with assets in the hands of bankrupt and otherwise financially troubled brokerage firms. The Securities Investor Protection Corporation was not chartered by Congress to combat fraud.
Financial Planning - 3/2008
Special Report: Practice Management -
Joe Deitch, CEO,
Commonwealth
Financial Network
Broker/Dealer of the Year
