Guidance for FinTech Applications

Overview

Activities relating to FinTech business models has attracted the interest of prospective and existing FINRA member firms. This guidance is intended to provide applicants with direction on key regulatory and compliance questions and challenges for both perspective and existing FINRA members. A prospective FINRA member firm must seek approval for new FINRA membership through the submission of a New Membership Application (NMA or Form NMA). An existing FINRA member firm that is contemplating a material change in business operations, among other changes specified by applicable FINRA rules, must submit a Continuing Membership Application (CMA or Form CMA). Both types of applications are reviewed by FINRA’s Membership Application Program (MAP) Group. MAP’s review of Forms NMA and CMA are governed by Rules 1011 through 1019 (collectively, the MAP rules) under the FINRA Rule 1000 Series (Member Application and Associated Persons Registration). For purposes of this Guidance, a prospective applicant for new membership should carefully review, in particular, Rules 1012 (General Provisions), 1013 (New Member Application and Interview), 1014 (Department Decision) and for an existing member that is contemplating a business expansion involving digital asset securities, Rules 1012, 1014, and 1017 (Application for Approval of Change in Ownership, Control, or Business Operations).

FINRA Compliance Tool Disclaimer

This optional tool is provided to assist member firms in fulfilling their regulatory obligations. This tool is provided as a starting point, and you must tailor this tool to reflect the size and needs of your firm. Using this tool does not guarantee compliance with or create any safe harbor with respect to FINRA rules, the federal securities laws or state laws, or other applicable federal or state regulatory requirements. This tool does not create any new legal or regulatory obligations for firms or other entities.

Updates

This tool was last updated on June 16, 2023. This tool does not reflect any regulatory changes since that date. FINRA periodically reviews and updates these tools. FINRA reminds member firms to stay apprised of new or amended laws, rules and regulations, and update their WSPs and compliance programs on an ongoing basis.

Additional Guidance

Member firms seeking additional guidance on certain regulatory obligations should review the Broker-Dealer Registration Topic Page and other relevant FINRA Topic Pages. Applicants are also encouraged to avail themselves of MAP’s pre-filing meeting process by contacting MAP via email or (212) 858-4000 – Option 5 – Membership Applications.

MAP Staff Contacts:

Jante Turner
(202) 728-8317

MAP Intake
MAP Group
(212) 858-4000 (Option 5 – Membership Applications)