Generally, brokers and dealers use subordinated loans and notes collateralized by securities (referred to as subordinations) to borrow funds or securities from investors to increase their regulatory net capital. Pursuant to FINRA Rule 4110(e)(1), subordinations must be approved by FINRA in order to receive beneficial regulatory capital treatment.
FINRA has implemented a platform to submit Subordinated Loan related requests electronically through the FINRA Gateway. For additional information, see Regulatory Notice 15-42.
To ensure you have access to the Subordinated Loans system, contact your firm's Super Account Administrator. For questions regarding the Subordinated Loan System, please contact FINRA Support Center at (301) 590-6500
Please contact the following individuals for any questions related to Subordination agreements: