The U.S. capital markets, overseeing over $115 trillion in annual securities trading (SEC, 2023), offer unmatched opportunities for foreign financial institutions. However, strict SEC and FINRA regulations create substantial barriers for non-U.S. firms looking to engage with U.S. institutional investors.
According to FINRA, to operate legally, foreign broker-dealers have two options:
- Establish a U.S.-registered broker-dealer, a process that can take 9-12 months and requires over $1 million in financial commitments.
- Partner with an SEC 15a-6 chaperone like FNEX, a cost-effective and compliant pathway to access U.S. capital markets.
What is SEC Rule 15a-6?
SEC Rule 15a-6 is a regulation under the Securities Exchange Act of 1934 that governs the ability of foreign broker-dealers to conduct business with U.S. investors without registering with the U.S. Securities and Exchange Commission (SEC) as a broker-dealer. Under this rule, foreign broker-dealers must partner with a U.S.-registered broker-dealer (chaperone) when engaging in certain activities, such as soliciting U.S. institutional investors or executing transactions.
The High Cost of Establishing a U.S. Broker-Dealer
Building a U.S.-registered broker-dealer requires:
- Approximately $1M+ in startup costs – Covering regulatory fees, compliance programs, legal infrastructure, and net capital requirements.
- Extensive regulatory approval – Firms must complete SEC and FINRA registration, undergo background checks, and secure state-by-state approvals, often leading to delays and rejections.
- Ongoing compliance obligations – Including annual audits, transaction reporting, and adherence to FINRA oversight, all of which demand dedicated legal and compliance teams.
For most foreign firms, the financial and operational burden of independent market entry is impractical.
FNEX’s SEC 15a-6 Chaperoning: A Smarter Alternative
As a U.S.-registered, FINRA-member broker-dealer, FNEX provides comprehensive SEC 15a-6 chaperoning services, allowing foreign fund distributors and asset managers to legally access U.S. investors without the burden of broker-dealer registration.
Why Choose FNEX?
- Immediate Market Access – Avoid costly delays and start engaging with U.S. institutional investors.
- Regulatory Compliance – FNEX ensures full SEC and FINRA adherence, mitigating risk.
- Cost-Effective Solution – Save over $1 million in setup costs while accessing top-tier U.S. capital sources.
- Seamless Transaction Facilitation – FNEX manages investor interactions, due diligence, and reporting, ensuring compliance at every step.
Learn More about FNEX Chaperone Service
Partner with FNEX
Foreign firms face significant challenges when entering the U.S. capital markets alone. FNEX eliminates these barriers, providing a fully compliant, efficient, and cost-effective solution through SEC 15a-6 chaperoning.
Contact us here or email us at info@fnex.com to speak to our team about how FNEX can help your firm access U.S. institutional investors while ensuring full compliance.
