SEC Releases Frequently Asked Questions Concerning the Broker-Dealer Financial Reporting Rules

SEC Releases Frequently Asked Questions Concerning the Broker-Dealer Financial Reporting Rules

Posted on

Author: Andrew K. Sledd, CPA, CFE

On July 30, 2013, the Securities and Exchange Commission (“SEC”) released amendments to the Broker-Dealer Financial Reporting Rule. The rules require broker-dealers to file new reports with the SEC that are expected to result in higher levels of compliance with the Commission’s financial responsibility regulations. The new rules amend existing Rule 17(a)-5 (annual reporting requirement), Rule 15(c)-3-3 (Customer Protection Rule), Rule 15(c)3-1 (Net Capital Rule), Rules 17(a)-3 and 17(a)-4 (Books and Records Rules) and Rule 17(a)-11 (Broker-dealer Notification Rule), as well as establish rules for filing a new quarterly “Form Custody” report.

On April 4, 2014, the SEC’s Division of Trading and Markets issued guidance titled “Frequently Asked Questions Concerning the July 30, 2013 Amendments to the Broker-Dealer Financial Reporting Rule”. These FAQ’s offer insight and clarity into some of the requirements of the new rule.

Keiter will continue to monitor information released from the SEC, FINRA, and other regulatory bodies as well as current industry practices for adopting the new rules and will continue to keep you informed of developments as they occur.

About the Author

​​Andrew specializes in auditing broker/dealers in securities, non-registered investment funds and registered investment advisers. He is a member of the Firm’s Financial Services Industry team and possesses a comprehensive understanding of SEC and FINRA rules and regulations. Read more of Andrew’s insights on our blog.

More Insights from Andrew K. Sledd, CPA, CFE

The information contained within this article is provided for informational purposes only and is current as of the date published. Online readers are advised not to act upon this information without seeking the service of a professional accountant, as this article is not a substitute for obtaining accounting, tax, or financial advice from a professional accountant.


How Can We Help You and Your Business?

Innsbrook Corporate Center
4401 Dominion Boulevard
Glen Allen, Virginia 23060

804.747.0000 or 804.273.6200