Distribution Support Services
As a limited purpose broker-dealer, Foreside provides statutory / medallion distribution services for registered funds and placement agent services for private placements.
- Serve as principal underwriter or placement agent
- Apply for and maintain an NSCC membership participant number for domestic or foreign funds, such as mutual funds, SICAVs and collective trusts
- Form a broker-dealer, including corporate entity, register with the SEC and relevant state jurisdictions and obtain FINRA membership
- Enter into dealer and sub-placement agent agreements to facilitate sales of fund shares
- Administer payment of Rule 12b-1 fees and any load payments, according to the funds’ authorized distribution plan (includes board reporting)
- Maintain broker-dealer agreements
- Register with states and FINRA
- Renew filings and state-specific requirements
- Submit annual reports to state jurisdictions and regulatory organizations
- Maintain relevant insurance
- Maintain Form BD
Foreside and its affiliated broker-dealer firms review thousands of pieces of material each year. This material includes fund fact sheets, websites, social media marketing materials, article reprints, presentations, annual and semi-annual reports, shareholder letters and broker-dealer use only communications. We strongly believe that our success in this area is due to our advertising review compliance team’s industry and regulatory knowledge, and our ability to work closely with our valued clients and the appropriate regulatory bodies.
We facilitate the sales material review process by (i) providing comments in connection with applicable SEC and FINRA rules and (ii) using a proprietary web-based database to monitor and track the use of materials for compliance with these rules. Our services include:
- Provision of an established framework and standards for the compliance review process
- Coordination of all communication between Foreside and client staff with timely reviews and approvals
- Maintenance of an “Advertising and Sales Literature Compliance Manual” to current regulatory requirements
- Provision of ongoing education to meet the changing SEC and FINRA regulatory landscape
Our review process includes the utilization of a proprietary web tool and database designed to enhance the communication flow between Foreside and its clients. As a control function, the database provides a critical tool to ensure that regulatory obligations are met.
Foreside assists with registered representative (Rep) compliance needs. Foreside can:
- Maintain appropriate FINRA and state registrations
- Process all appropriate registrations, tests and renewals
- Provide and facilitate FINRA’s continuing education program, both firm and regulatory elements
- Prepare, maintain and disseminate to all Reps a Compliance and Supervisory Procedures manual
- Conduct an annual onsite compliance meeting and ensure Rep participation
- Administer ongoing compliance training for Reps, including supervision, on-site office inspections, books and record requirements, sales material and Rep dossier files
- Define permissible Rep activities
- Maintain Rep licenses, such as the Series 6, 7, 22, 24, 26, 63, 79 and 82
- Establish supervising principal at Office of Supervisory Jurisdiction location and provide training
- Consult with current Reps and supervising principals
- Download current SRO Jurisdiction Fees
For a summary of Foreside’s Business Continuity Plan, please click here.