Series 14: 7.3.1.3. Required Number Of Principals And Roles Requiring A Designated Principal

7.3.1.3. Required Number of Principals and Roles Requiring a Designated Principal

FINRA sets certain minimums as far as the number of principals a member must have. Some of these minimums involve making sure that certain functions are being carried out by someone who is registered as an appropriate type of principal.

• Overall requirement. All firms except sole proprietorships must have at least two principals. These must be either General Securities Principals, or limited principals specific to the type of firm (for example, an Investment Banking Principal for an investment bank).

• FINOP requirements. All firms must have at least one FINOP (regular or introducing). For self-clearing firms, the minimum is two.

» All firms must designate a FINOP (regular or introducing) as its Principal Financial Officer (PFO). The PFO is responsible for finance-related filings, and the books and records those filings rely on. All PFOs are FINOPs.

» All firms must designate a FINOP (regular or introducing) as its Principal Op