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Broker Dealer Due Diligence

We’ve done the broker dealer financial and compliance due dilligence so you don’t have to.

At Henschen & Associates, we dig deep into a broker dealer’s financials and compliance history, to help you get a clear picture of the broker dealer’s situation and avoid being blindsided by added requirements and restrictions down the road.

Financial Due Diligence:

  • Revenue and revenue history: Is the broker dealer growing or in decline?
  • Net earnings: Does the broker dealer earn a consistent profit?
  • Net capital: Does the broker dealer have ample financial reserves to cover litigation not covered by E&O Insurance?
  • Indebtedness to net capital ratio: This ratio is an indicator to the amount of debt a broker dealer carries vs. their net capital and is a key indicator of financial health.

Let Henschen & Associates help you avoid unexpected surprises after joining a new broker dealer.

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