Principals

Principals
Member firms need principals who review correspondence, approve every account, initial order tickets, handle written customer complaints, and make sure there's a procedural manual for the office to use. In other words, somebody at the firm is ulti¬mately responsible for the business of the firm—that person is the principal.
FINRA says:
•    • • • • • • • • • • • • •
•    All Principals Must Be Registered    •
•    All persons engaged or to be engaged in the investment banking or •
•    securities business of a member who are to function as principals •
shall be registered as such with F1NRA in the category of regis-
•    •tration appropriate to the function to be performed as specified in •
•    Rule 1022. Before their registration can become of ffective, they    •
•    shall pass a Qualification Examination for Principals appiv-
 •
priate to the category of registration as specified by the Board of
•    Governors.    •
•    • • • • • • • • • • • • •
Here is how FINRA defines a principal:
•    • • • • • • • • • • •
•    Definition of Principal    •
•    Persons associated with a member who are actively engaged in    •
•    the management of the member's investment banking or securities •
•    business, including supervision, solicitation, conduct of business or
 •
the training of persons associated with a member for any of these
•    functions are designated as principals.    •
•    • • • • • • • • • • • • •
Also, note that, in general, each member must have at least two principals taking care of:

•    New accounts
•    Trades (transactions)
•    Communications
•    Written Customer Complaints
•    Updating the Written Supervisory Procedures (WSPs)
Research Analysts
A research analyst prepares the research reports put together by a member firm. To become a research analyst, one generally must earn the Series 7 and then pass an¬other license exam specifically for research analysts (Series 86 and 87).
A supervisory analyst must approve all research reports.
•    • • • • • • • • • • • • •
•    Registration of Research Analysts    •
•    •(a) All persons associated with a member who are to function as •
•    research analysts shall be registered with FINRA.    •
•    • • • • • • • • • • • • •

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