Quick Answer
A Financial and Operations Principal (FINOP) is the principal responsible for a broker-dealer's financial and operational compliance functions. The role oversees regulatory financial reporting, financial records, and regulatory financial computations. It connects the firm's general ledger, net capital, and reserve-formula work into one firm-level financial oversight function.
The FINOP provides the financial-and-operational framework for the records, reports, and calculations that follow.
The FINOP's Role
- A Financial and Operations Principal (FINOP) is responsible for a broker-dealer's financial and operational compliance functions.
- Regulatory financial oversight includes the firm's:
- Financial reporting
- Financial records
- Regulatory financial computations
- These responsibilities concern the broker-dealer as a firm.
The Connected Financial Areas
The financial information moves through related operational areas:
Financial records → general ledger → regulatory reporting and calculations → net capital and reserve-formula work
- The FINOP's role provides oversight across this connected process.
- Each area has a distinct purpose, but all rely on the firm's financial information.
Exam Tip: Gotchas
- The FINOP is a firm-level financial and operational role. It is not a role focused on servicing an individual customer account.