Broker Dealer Services

MaloneBailey LLP Tax Service Houston Texas

MaloneBailey, LLP provides audit, compliance and accounting services to small and mid-sized security broker dealers. We provide these services to broker dealers approved by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).

We understand that compliance with regulatory requirements is of paramount importance to you as a broker dealer. You also need to maximize your financial statement presentation and manage your internal controls. We provide an array of services to achieve these objectives including:

Start-up Services

If you are forming your broker dealer firm, we can help you navigate the sometimes complex start-up process and assist with:

  • SEC Registration
  • FINRA Broker Dealer registration
  • Continuance in Membership Agreements (CMA)
  • State Registrations

Compliance Services

We understand how important compliance with FINRA and SEC regulations is to your success. That’s why we provide a range of compliance services to provide you the peace of mind that you are meeting regulatory requirements including:

Independent Testing of Anti Money Laundering Procedures as required by FINRA

    • Advising you regarding FINRA Rule 3310 (Anti-Money Laundering Compliance Program — AML)
    • Assisting with your Customer Identification Program (CIP)
    • Writing procedures for your AML and CIP
    • Auditing procedures for strict compliance with FINRA and BSA/USA Patriot Act Regulations
    • Acting as a liaison with you and State and Federal Regulatory Agencies
    • Formulate remediation plans for problems identified by FINRA

Independent Testing of Anti Money Laundering Procedures as required by the NFA (National Futures Association) under
NFA compliance rule 2-9.

Written Supervisory Procedures and Audit

    • Ensuring compliance with FINRA Rule 3130 (Annual Certification of Compliance and Supervisory Processes)
    • Assisting with Business Continuity Planning as required in Rule 3510(e)

Accounting Services

Our smaller broker dealer clients sometimes lack the resources to manage their accounting process internally, and instead look to us as a resource to outsource their accounting functions including:

Bookkeeping, Financial Statement Preparation and FINOP Consulting

    • Prepare financial information and FOCUS Reporting
    • License with firm as Financial and Operations Principal (Series 27)
    • Review accounting systems for accrual accounting and general ledger functionality
    • Review monthly financial’s and propose necessary accounting adjustments
    • Interface with regulators
    • Participate in your audit, FINRA examinations and tax return preparation
    • Monthly or Quarterly Reports
    • Net Capital Requirements
    • “Haircut” Calculations

Tax Preparation and Planning

    • Corporation, S-Corporations, Limited Liability Companies, and Partnerships
    • Payroll and contractor reporting services

Broker Dealer Independent Audits

As a broker dealer, FINRA rules dictate that you must receive an annual audit from a PCAOB-registered auditor. MaloneBailey, LLP has been registered with the PCAOB since its inception and are both experienced and efficient at delivering FINRA-compliant audit services for your firm.

Broker Dealer Independent Audits

Where SEC rules allow, MaloneBailey, LLP provides a number of internal audit services to help ensure compliance, control and efficiency in your internal processes. These services include:

Reviews of Books, Records and Processes

    • Recommending Operational Improvements
    • Resolving Net Capital Violations
    • Accounting Reconciliation
    • Trade Reconciliation

For additional information about how we can help your broker dealer business with compliance, reporting, and internal controls, please contact John Malone at or 713.343.4211.