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Investment Banking Regulation

Why FINRA is Important

Transparency & Regulations Matter

The Managing Directors at Telos Capital Advisors LLC, are proud to be registered representatives with The Financial Industry Regulatory Authority (FINRA). We believe this should be a prerequisite in all decisions to hire an investment banker. However, most of the lower middle market investment bankers and business brokers, we compete with, are NOT FINRA registration bankers and they have no requirements to inform you of this.

FINRA plays a crucial role in the realm of investment banking, acting as a regulatory body overseeing the conduct and operations of brokerage firms and individuals working within the securities industry. For companies seeking to engage investment bankers for various financial services such as sell side advisory, mergers and acquisitions advisory, and capital raising, understanding the significance of FINRA is paramount. Here are some key reasons why FINRA is important to companies when selecting investment bankers.

Compliance Assurance.

FINRA establishes and enforces rules and regulations that govern the behavior of investment bankers and broker-dealer firms. By ensuring compliance with these standards, companies can mitigate the risk of engaging with unethical or fraudulent entities, safeguarding their interests and reputation.

 

Not only does FINRA issue regulations, our broker-dealer has additional monitoring, including approving all of our correspondence, our marketing materials, audits our engagement fees, and reviews our key client files. These actions protect our clients and assure we have complied with all securities offerings. The ins and outs of investment banking are foreign to most companies in the lower middle market. Hence, it is imperative that external monitoring be provided so that clients are protected against what they don’t know.

Investor Protection.

Through its oversight of investment bankers and broker-dealer firms, FINRA aims to protect investors by promoting transparency, integrity, and fair dealing in the securities market. Companies benefit from this regulatory framework as it fosters a more trustworthy and stable investment environment, attracting potential investors and facilitating capital formation.
 
As part of Telos Capital Advisors' core principles, we always operate with candor, truth, and integrity.

Market Credibility.

Working with investment bankers who are registered with FINRA enhances a company's credibility in the eyes of potential buyers, lenders, and other potential targets in all investment banking activity. FINRA is recognized by sophisticated capital providers and signals a commitment to upholding industry standards and adhering to regulatory requirements, instilling confidence in the integrity of the company's financial transactions and strategic initiatives.

Education & Reporting.

All the Telos Capital Advisors Managing Directors are registered with and hold multiple FINRA licenses. We believe having knowledge of how the securities industry functions is critical and creates the foundation upon which all transactions are built. FINRA, along with our broker-dealer, DCF LLC established these standards and quality controls for a reason and these entities are constantly changing and improving the education and reporting requirements.

You are free to check out the FINRA file, using Broker Check, on each Managing Director at Telos Capital Advisors. This includes our FINRA certifications, state licensure, and disclosures.
 

Bernard V. Carrio, Jr., CRD #1773158

Robert Rough, CRD# 2466229

Bob Lutz, CRD#2825259

Please contact us if you would like to learn more about why a FINRA registered investment banker should be an important part of your investment banking selection process. We are happy to discuss several examples of previous clients were the FINRA registration was an important part of obtaining a successful transaction.

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