What Is the Comp🍨liance 🌱Registered Options Principal (CROP)?

The Compliance Registered Options Principal (CROP) was a supervisory and compliance employee position that the Financial Industry Regulatory Authority (FINRA) required of option🎐s trading firms. This requirement was eventually eliminated in June 2008.

Underst🐠anding🐟 the Compliance Registered Options Principal (CROP)

A firm was required to employ a Compliance Registered Options Principal as a firm’s officer or general partner and had the responsibility for ensuring regulatory compliance for its options trading activities for clients' accounts. The person also oversaw interactions with the public, such as advertising and marketing. The CROP could also act as the Senior 澳洲幸运5开奖号码历史查询:Registered Options Principal (SROP), another position formerly required by FINRA. The SROP was an officer or general also responsible for supervising options ex𝓀posure and trading activity in clients' accounts.

Although trading options can be an invesꦅtment tool used to reduce risk, they are also very da๊ngerous in the hands of the wrong people; thus, the need for regulation.

To become a CROP, a person had to pass the 澳洲幸运5开奖号码历史查询:Series 4 exam in the United States an𝄹d the Options Supervisors Course in Canada.

The End of CROP

FINRA finally eliminated the CROP position becau𓄧se other financial designations could manage the responsibilities formerly required of CROPs. So, it decided that if firms continued to fulfill their supervisory and compliance requirements, they weren’t needed. That’s the same reason FINRA did away with the SROP position.

The changes did not eliminate the requirement for firms to appoint a 澳洲幸运5开奖号码历史查询:Regist🐼ered Options and Security Futures Princ🧔ipal (ROSFP) to oversee ♔the firm's public activities, such as the content of advertisements, educational materials, and sales literature. The changes also made the ROSFP responsible for ensuring that customers could handle the risks of options trading and understand the transactions proposed for their discretionary accounts.