News & Analysis as of

Customer Protection Rule

Orrick, Herrington & Sutcliffe LLP

SEC amends the Broker-Dealer Customer Protection Rule

On January 13, the SEC published to the Federal Register a final amendments to Rule 15c3-3 – the Broker-Dealer Customer Protection Rule – to require daily reserve calculations for certain large broker-dealers. The...more

WilmerHale

SEC Amends the Customer Protection Rule to Require Daily Reserve Formula Computations for Large Clearing/Carrying Broker-Dealers

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On December 20, 2024, the Securities and Exchange Commission (SEC) issued a final rule amending SEC rules 15c3-3 (the customer protection rule) and 15c3-1 (the net capital rule). The SEC also amended Form X-17A-5 Part II (the...more

Awatif Mohammad Shoqi Advocates & Legal...

Navigating New Rules: Challenges for Investors and Banks in UAE Banking Law Amendments

The Federal Decree-Law No. 14/2018 on the Central Bank and the Organisation of Financial Institutions and Activities, along with its recent amendments outlined in Federal Decree-Law No. 54/2023, has introduced significant...more

Seward & Kissel LLP

The SEC Approves Mandatory Clearing of Transactions in US Treasury Securities: Issues for the Buy Side to Consider

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On December 13, 2023, the Securities and Exchange Commission (the “SEC” or the “Commission”) voted 4-1 to approve Standards for Covered Clearing Agencies for U.S. Treasury Securities and Application of the Broker-Dealer...more

UB Greensfelder LLP

[Webinar] What Was New at the SEC in 2023? - December 7th, 12:00 pm - 1:00 pm EST

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Join Ulmer partner Frances Floriano Goins as she shares an overview of the Securities and Exchange Commission's 2023 ammendments and rules regarding: - enhanced customer protection practices - disclosure of...more

Lowenstein Sandler LLP

SEC’s 2024 Examination Priorities for Broker-Dealers

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On October 16, 2023, the U.S. Securities and Exchange Commission (“SEC”) Division of Examinations (the “Division”) released its annual Examination Priorities for fiscal year 2024 (the (“Report”), marking the first time the...more

Perkins Coie

SEC Proposes To Amend Broker-Dealer Customer Protection Rule Reserve Account Calculation Requirements

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The U.S. Securities and Exchange Commission (SEC) proposed to amend Exchange Act Rule 15c3-3 (the Customer Protection Rule)[1] on July 12, 2023. If adopted, the proposed amendments would increase the frequency with which...more

Goodwin

Financial Institution Diversity Voluntary Self-Assessments: Due September 30

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Financial Institution Diversity Voluntary Self-Assessments: Due September 30 - On July 13, the FDIC issued a financial institution letter announcing that FDIC-supervised financial institutions are encouraged to...more

Lowenstein Sandler LLP

SEC Releases 2023 Examination Priorities for Registered Investment Advisers and Broker-Dealers

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On February 7, 2023, the U.S. Securities and Exchange Commission (“SEC”) Division of Examinations (the “Division”) released its annual Priorities Report1 for upcoming examinations of registered investment advisers...more

Ballard Spahr LLP

How the New York Department of Financial Services (DFS) Regulates Virtual Currency, a Close Look with Special Guest Kaitlin Asrow,...

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After reviewing the licensing/chartering/approval structures that DFS uses for entities seeking to engage in virtual currency activities, we discuss the role of guidance in DFS’s regulation and oversight of virtual currency,...more

King & Spalding

Mid-Year Report: FINRA Enforcement Builds Momentum After Historic Penalties

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After collecting near-record amounts in fines, restitution, and disgorgement in 2021 – which included a $70 million monetary penalty against a financial institution in a single action – FINRA continues to raise the bar on...more

Goodwin

Time’s Up! Broker-Dealers Must Comply with the Customer Protection Rule When Borrowing Customer Securities

Goodwin on

On April 16, 2021, the staff of the SEC Division of Trading and Markets reminded broker-dealers borrowing fully paid and excess margin securities from their customers (FPL programs) that they are obligated to comply with...more

Fox Rothschild LLP

New SEC Division Undertakes 2021 Examination Priorities

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On December 17, 2020, SEC created the Division of Examinations by renaming the now defunct, Office of Compliance Inspections and Examinations, making it the SEC’s 6th Division joining Enforcement, Corporation Finance, Trading...more

Eversheds Sutherland (US) LLP

Digital asset securities: broker-dealer custody issues

As 2020 came to a close, the issue of how digital asset securities can be custodied by US broker-dealers became clearer, at least from a regulatory standpoint. In a release issued pursuant to the Securities Exchange Act of...more

Goodwin

SEC To Permit Custody Of Digital Asset Securities By “Special Purpose” Brokers

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Christmas came early for many in the digital asset community by way of a statement from the U.S. Securities and Exchange Commission (“SEC” or “Commission”) on December 23, 2020 that grants relief in the area of broker...more

Morrison & Foerster LLP

SEC Provides No-Action Relief For Broker-Dealer Sweep Programs

On March 30, 2020, the Securities and Exchange Commission (SEC) issued a no-action letter stating that the staff of the SEC’s Division of Trading and Markets would not recommend enforcement actions against broker-dealers that...more

A&O Shearman

California Federal Judge Holds That Claims Under Section 10(b) Require "Out-of-Pocket" Loss

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On February 28, 2020, Judge M. James Lorenz of the United States District Court for the Southern District of California dismissed a putative securities class action against an investment management company (“Company”) and its...more

Polsinelli

FINRA and SEC Issue Joint Statement on Security Token and Custody Rules

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On July 8, 2019, the staff of the U.S. Securities and Exchange Commission (“SEC”) Division of Trading and Markets and the staff of the Financial Industry Regulatory Authority (“FINRA”) issued a joint statement outlining...more

Jones Day

SEC/FINRA Issue Joint Guidance on Broker-Dealer Custody of Digital Assets

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The Situation: In a recently released joint statement ("Statement"), the Staffs of the U.S. Securities and Exchange Commission's ("SEC") Division of Trading and Markets, and the Financial Industry Regulatory Authority...more

Katten Muchin Rosenman LLP

SEC and FINRA Issue Joint Staff Statement on Broker-Dealer Custody of Digital Asset Securities

On July 8, the Division of Trading and Markets for the Securities and Exchange Commission (SEC) and the Office of General Counsel for the Financial Industry Regulatory Authority (FINRA) issued a joint statement (the...more

Orrick - On the Chain

SEC/FINRA Joint Statement on Digital Asset Securities Does Not Address Regulatory Log Jam

Orrick - On the Chain on

Last week, the Staffs of the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) (collectively, the Staffs) released a Joint Statement concerning the application of the SEC’s...more

White & Case LLP

Key Takeaways from the SEC and FINRA Joint Statement on Broker-Dealer Custody of Digital Asset Securities

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As part of the continuing dialogue with market participants working toward developing methodologies for establishing possession or control by broker-dealers over their customers' digital asset securities, on July 8, 2019, the...more

Perkins Coie

SEC and FINRA Staffs Issue Joint Statement on Broker-Dealer Custody of Digital Asset Securities

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The staffs of the Division of Trading and Markets (Division) of the U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) (collectively, the “Regulators”) published a joint...more

Katten Muchin Rosenman LLP

Bridging the Weeks - July 2019 #3

Staff of the Securities and Exchange Commission and the Financial Industry Regulatory Authority issued a joint statement setting forth concerns they have with the ability of broker-dealers to comply with the SEC’s Customer...more

A&O Shearman

US Regulators Clarify Position on Broker-Dealer Custody of Digital Asset Securities

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The U.S. Securities and Exchange Commission and the Financial Industry Regulatory Authority have issued a joint statement clarifying how their traditional regulatory approaches would apply to how broker-dealers handle their...more

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