What is a POO/PFO and Does My Firm Need One?

Pursuant to FINRA Regulatory Notice 17-30, all Broker-Dealers are required to designate a Principal Operations Officer “POO” and Principal Financial Officer “PFO”. This requirement replaces the current requirement that dual members of FINRA and the NYSE designate a Chief Financial Officer (CFO) and a Chief Operations Officer (COO) and that other FINRA members designate a CFO.

SDDco-PC will assign a qualified series 27 licensed individual to be your designated POO and PFO!


Responsibility of a POO

The Principal Operations Officer (POO) is responsible for overseeing that the day-to-day operations of your business are properly supervised by assigned personnel. This includes ensuring that client on-boarding and all related account opening and account maintenance documentation is complete and accurate; order processing; implementation of the business continuity plan; overseeing the receipt and delivery of securities and funds; safeguarding customer and firm assets; proper calculation and collection of margin from customers; and ensuring that required records, such as written agreements entered into by your business are complete and accurate and preserved for the applicable retention period.

Responsibility of a PFO

The Principal Financial Officer (PFO) is responsible for continuing net capital compliance, financial filings and the related books and records. The FINOP has always been considered the “regulatory CFO”. The PFO designation has memorialized the role and its responsibilities.

SDDco Group’s Outsourced POO and PFO’s:

  • Play in fluid waters, are always exposed to changing regulatory conditions, and must adhere to regulatory announcements
  • Have knowledge and competence concerning industry “best practices” gathered through involvement with multiple firms
  • Are a cost-effective alternative to the salary and fringe benefit costs of a qualified in-house POO and PFO
  • Reduce regulatory exposure by reviewing your firm’s financials under the sharp lens of a CPA
  • Can be fulfilled by the same person

Additionally, you get access to all our FinOps and accounting professionals with broad on-going exposure to broker-dealer operations. Our FinOps are all degreed accountants that can serve as your firm’s CFO.

Would you like to mitigate risk and reduce regulatory exposure?