Violating U.S. Broker Rules is Costly
Firms based outside of the U.S. are subject to heavy fines from the SEC for violating federal securities laws by providing cross-border brokerage and investment advisory services to U.S. clients without first entering into a 15a-6 relationship with a U.S. broker, such as Enclave. Both large and small financial services firms have been charged with providing brokerage services to institutional investors without being registered with the SEC or establishing a 15a-6 relationship, and have faced multi-million dollar settlements.
Enclave Provides an Immediate Solution for Unregistered Firms
Registering and operating a U.S. broker-dealer is costly and time consuming. Typically, the process of registering a foreign broker takes up to a year, and involves expenses up to $1,000,000. After the initial registration, regulatory and annual running costs can easily exceed $500,000 per year, including the cost of hiring a Chief Compliance Officer and at least one Series 24 registered representatives. Once the broker-dealer license is granted, it will take months to open institutional accounts and operate. With Enclave, you are able to access institutional accounts immediately while operating under your own brand.