Everything needs strategic planning for its smooth happening and so does the case with a brokerage firm. To keep its operations flawless enough, taking good care of its financial systems plays the role of a vertebral bone. Like there are multiple persons in a firm for looking after its different departments so do is the FINOP professional for finances. Earlier there were staff accountants who used to handle the financial statements and FOCUS reports of a respective brokerage firm. But for now, it’s not enough as the business sector has been evolved much and there is strong competition with strong regulatory requirements. So having a financial and operation professional is the best alternative as he can do more than financial statements and focus reports.

What Are the Rules for Appointing A FINOP?

Since a FINOP is liable for handling some very important regulatory affairs in a firm so there are certain considerations that you must practice for an appointment.

The list is given below:

  • Education
  • Series 27 license
  • Professionalism

What IS Series 27 License?

A series 27 license as the name suggests is permission from the state the individual is allowed to operate as FINOP in any brokerage firm. The license is named after a series 27 exam that the respective person has to clear in order to get it. It serves as a guarantee that you are having the right person aboard with complete knowledge of broker-dealer accounting.

How does A FINOP Works?

A FINOP’s working is a three-step phenomenon that involves

  1. Informing
  2. Optimizing
  3. Operating



This initial step of a FINOP’s work involves information providence to business teams regarding benchmarking, budgeting and forecasting. This information enables a firm to increase its ROI remaining within budget. Further in this step, a FINOP helps firms’ owners in decisions making that play the role of catalyst in taking the business to the desired level of success in less time.


Once the relevant information sharing with the business is done then comes the cloud footprint optimization. Cloud providers are given various optimization options overseeing the cloud capacity because it’s a little expensive therefore every brokerage business can’t afford it. In order to have an increased commitment ratio, a FINOP offers discounts after carrying all the complex calculations required for it. This helps a firm minimize the spending that revives more and more benefits to it.


The third and last step involves operations where a financial and operations professional is supposed to do the practical handling of the tasks. First, he accesses the performance metrics to check if the business is meeting the decided targets or a little more strategic planning and effort is needed. Next, they oversee all the circumstances to make sure that the firm is having space for cloud usage or not. In addition to this all in this step, they also look for the speed and quality of the cloud capacity.

Types of FINOP:

The FINOP services are of two types

  1. Full-time FINOP
  2. Outsourced FINOP

A FINOP is there to deal with multiple things in a firm at a time, therefore, the charges are accordingly. In case you are going for a full-time FINOP the charges raise a little higher. Further, if you are looking for an economical solution you can go for an outsourced one. As per its name, an outsourced FINOP is the one who attends your firm for a certain time and once all the tasks are done he leaves.

However, there is a certain rule for availing Outsourced FINOP services that are a follows.

  1. While hiring a third party FINOP make sure about the qualification of the person you are having aboard for the respective duty.
  2. Check the previous work record of the person and the firm that is providing you having finance and operational services for your firm.
  3. Decide the duties of a FINOP before signing a work agreement with him, it helps you avoid further problems coming your way.
  4. Check for the abilities of the FINOP since he is responsible for summarizing your business into a financial report.
  5. Ask for the mannerism of the concerned person as he is going to represent your firm before the authorities in the future.
  6. Check if the firm is providing the services that suit your requirements or not as hiring out of syllabus persons won’t be of any benefit for you.

Manage your budget for FINOP and hire a person that fits your set budget.

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