Exclusive Case Study

From Limited to Full-Service: A Broker-Dealer Launch Story

See how Oyster guided a firm from wholesale-only ambitions to a full-service broker-dealer with an RIA—delivering strategy, registration, and outsourced compliance.

Oyster Consulting BD Registration

 

Client Profile

A financial services firm came to Oyster Consulting LLC (“Oyster”) to guide them through the process of becoming a broker-dealer.

In early discussions, Oyster’s sales and regulatory team questioned whether this limited approach aligned with the client’s long-term vision. As conversations progressed, it became clear that the firm had broader ambitions that could require a more expansive registration strategy.

The Situation

As the client shared their goals, Oyster’s team quickly identified key considerations that could impact their registration status—such as regulatory exposure, staffing, net capital requirements, and supervisory obligations.

The client’s evolving business plan included offerings like:

  • Variable annuities, variable life, and mutual funds

  • Equities and bond trading

  • Real estate investment trusts (REITs)

Given these diverse activities, Oyster recommended the firm consider registering as a full-service broker-dealer rather than a limited one, and also advised establishing a companion RIA.

Oyster Consulting BD Reg

Oyster's Approach

To set the firm up for long-term success, Oyster provided:

  • Strategic guidance during the New Member Application (NMA) process

  • FINRA registration support for both the broker-dealer and newly formed RIA

  • Outsourced Chief Compliance Officer (CCO) and FINOP roles to ensure proper supervision and financial accountability

Scope of Services: Broker-Dealer Registration Process

 

Phase I: Pre-Filing

  • Conducted principal interviews to fully understand the business model

  • Addressed key operational areas: ownership, funding, net capital, supervision, advertising

  • Secured FINRA Gateway entitlements

  • Developed full business plan and supplemental documents:

    • Written Supervisory Procedures (WSPs)

    • Business Continuity Plan

    • AML Program

    • Privacy Policy and Record Retention

    • Pro forma financials, certifications, and CE plans

  • Participated in pre-filing meetings with FINRA as needed

  • Finalized full NMA application package

Phase II: Post-Filing

  • Filed application on behalf of the client

  • Managed FINRA follow-up and documentation requests

  • Prepared client for the FINRA Membership Interview

BD Bob 3

What Our Clients Have to Say

"The Oyster team has always shown they have in-depth industry knowledge that has proven to be invaluable to us as a firm, from looking at issues strategically to helping implement efficiencies.  We have never been disappointed with their engagements."

- President, National Broker Dealer

 

“Oyster took away the guess work, providing us with a strategy that led to value.” 

- President, National Broker Dealer

 

"Oyster's expertise helped us streamline our business model to ensure we are focused on driving revenue and becoming less burdened by outdated policies and procedures."

- Founder, Broker Dealer

 

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