There is currently an initiative by NASD district offices to review cost-sharing arrangements already in place through routine audits and ongoing membership applications. Cost-sharing agreements between dealer brokers and third parties are a hot topic for finra and the SEC. Companies and their FINOPs should fully understand the publication to members 03-63. (8) Every dealer dealer must be able to demonstrate compliance with the rules on financial liability under a cost-sharing agreement. Therefore, it may be necessary to give those authorities access to accounts and registers, including unregistered entities, in respect of the costs covered by the agreement.
