Regulatory and Further Safeguards

As a registered broker-dealer, National Financial Services LLC is subject to the rules and regulations of the Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA) and other exchanges of which National Financial Services LLC is a member, and the Municipal Securities Rulemaking Board (MSRB). These regulatory organizations each have certain rules and regulations that National Financial Services LLC must follow to safeguard your assets, including:

  • Keeping accurate records of your assets held at National Financial Services LLC
  • Maintaining net capital at required levels

In compliance with SEC rules, National Financial Services LLC has its financial information audited every year by an independent public accounting firm. Further, as a member of the NYSE and FINRA and registered with the SEC , National Financial Services LLC is subject to their regulatory oversight and examinations.

National Financial Services LLC is required by the SEC to file monthly and quarterly financial and operational reports (FOCUS reports) within l7 business days of the month's end. The quarterly reports contain financial statements, including:

  • Statement of financial condition
  • Income statement and statement of changes in stockholders' equity
  • Regulatory schedules, including a computation of net capital, a reserve formula computation, and other key financial and operational data

As a broker-dealer, National Financial Services LLC cannot use your fully paid securities for its business. These securities must be held for your own exclusive benefit, and are subject to the instructions that we provide to National Financial Services LLC.

National Financial Services LLC must account for and inspect every physical security owned by an investor at least once every calendar quarter. Any differences must be recorded and corrected within specific time frames. Net customer cash balances not required for customer transactions must be maintained in a cash account segregated for the exclusive benefit of customers.