The Power of Broker-Dealer Sponsorship


Written by Finalis

Last edited on Mar 15, 2023

3 min read

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If you're looking to build a successful career in investment banking, securing a broker-dealer sponsorship is one of the most important steps you can take. What exactly is broker-dealer sponsorship, and why is it so important?

What is the purpose of a broker-dealer sponsorship?

Broker-dealer sponsorship refers to the affiliation between an investment banker and a registered broker-dealer firm. This affiliation allows financial professionals to offer securities products and services to clients, such as stocks, bonds, mutual funds, and other investment products. (A “broker-dealer” is the intermediary party in a securities transaction between investment bankers and their clients; it is also the designated term, in the U.S., for the corporate entity that FINRA, the securities regulator, supervises.)

In order to become sponsored by a broker-dealer, a financial professional must meet certain qualifications and requirements, such as passing mandatory licensing exams and having the necessary experience in the financial industry.

Key advantages of a broker-dealer sponsorship

One of the main benefits of broker-dealer sponsorship is that it can provide financial professionals access to the tools and resources they need to succeed. This includes among other things, regulatory compliance oversight on deals and transactions, access to research and  market analysis, and technology that helps financial professionals make informed decisions when working with clients. Broker-dealer sponsorship and affiliation provides such professionals with a level of credibility and recognition in the investment banking industry, which helps attract and retain new clients, and grow their business.

Another benefit of broker-dealer sponsorship is the support and guidance that is provided to financial professionals. Sponsored brokers receive ongoing training and support to help them navigate the constantly evolving financial landscape. This support can be especially helpful for newer financial professionals who are just starting out in the industry.

However, finding the right broker-dealer sponsor can be a challenge. You should look for a broker-dealer sponsor that aligns with your goals, values, and business philosophy. Additionally, you should look for a sponsor that has a strong reputation and track record of success, as well as a commitment to providing quality support and resources to its sponsored brokers.

Who Can Offer Broker-Dealer Sponsorship?

The options for those seeking broker-dealer sponsorships and affiliations are limited. The majority of individuals pursuing a broker-dealer license will be sponsored through their employment at a FINRA member securities firm. These types of employers can offer sponsorship for various FINRA exams. However, securing employment at such firms can be competitive due to the high demand for sponsorships. Additionally, many potential sponsors prefer to hire applicants who are already licensed. 

Obtaining a broker-dealer sponsorship

Alternatively, you can search for firms that offer sponsorships, particularly for the exams that interest you the most. For instance, if you're looking for a series 82 sponsorship, it's best to avoid companies that have mainly sponsored series 6 exams. Take a look at FINRA Exams: A Guide to Becoming a Licensed Broker for an overview of the most common FINRA qualification exams for those looking to establish and grow a career in M&A brokerage, investment banking, or placement agencies.

How Can Finalis Help You?

Finalis is a leading broker-dealer offering comprehensive sponsorship and affiliation, as well as support programs to financial professionals. With a focus on providing world-class regulatory compliance support and legal resources, in a 100% cloud-based technology platform, Finalis is dedicated to helping middle market investment bankers achieve their goals and succeed in the industry.

Broker-dealer sponsorship is a critical component of success in the financial industry. With the right sponsor, financial professionals can access the tools and resources they need to succeed.  Contact our team to find out more about joining Finalis’ growing network of middle markets investment banking professionals.

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