Starting an OSJ/independent firm

or Register to post new content in the forum

 

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Jun 4, 2005 12:10 pm

Hey i recently decided with few partners to start my own branch either
thru jp turner or somewhere else, im trying to figure out what other
license requirements and financial requirements are needed.



As far as to my own knowledge i assume i only need one series 24 in
house to do compliance. Im not sure if a need a series 4 in house or i
could just fax the options ticket to the main branch.



Now do i need to have certain capital sitting in the bank to open an osj or just our books.



Also if i decided to use my own corporate name ex. blah capital, inc.
instead of jp turner can that be done and are there any special
requirements ?



If anyone knows about this or done this before, your advice would be appreciated. Thanks

Jun 10, 2005 9:26 am

Moonlight -


Congrats on your decision!  I am an independent recruiter that works with reps who have made the decision to go on their own.  I would be happy to answer your questions and point you in the right direction.


email me at [email protected]


Jul 2, 2005 4:11 pm

Moonlight,


Taking the leap of faith is your road to freedom for you and your partners. More and more reps are doing the same and its a very comon trend in our industry.


As far licenses you will need a 7, 24, and 63. Depending on how many reps you plan on supervising more than one of you should have a 24. A 4 will be needed and recomended if your OSJ will be doing a great deal of options acivity.


Most firms will probably allow you to operate a branch office first under a probationary period. Once you have proven your track record and your ability to supervise they will set you up as an OSJ. Of course everything is contingent to a CRD review and experience. If your license is clean you should have no problem. It will also help if your broker's licenses are clean as well. 


You do not need certain capital to establish an OSJ but you will certainly need a good book of business, AUM, and production.


You are or should be allowed to use your own corperate identity but you have to disclose your introducing BD and custodian of accounts (clearing firm). Each firm has their own regulatory and compliance guidelines to this issue. In essence if you are making the leap of faith its because you want to build a name for your self not for a corporate giant.


If you have any other questions feel free to e-mail me. You can never learn to much by asking all the right questions. Particularly if you're going independent.


Good Luck...


Francisco Otalvaro


[email protected]