What is Rule 17A 5?

What is Rule 17A 5?

(5) Whenever any national securities exchange or registered national securities association takes any action which causes any broker or dealer which is a member of such exchange or association to cease to be a member in good standing of such exchange or association or when such exchange or association learns of any …

What is SEC Rule 15c3 3?

Securities and Exchange Commission (SEC) Rule 15c3-3 requires brokerage firms to maintain secure accounts. Also known as the Customer Protection Rule, SEC Rule 15c3-3 is part of the Code of Federal Regulations. It ensures that brokerage clients can withdraw assets at any time, and a brokerage has to work to uphold it.

What are non allowable assets?

Non-Allowable Asset – An asset that is not readily convertible into cash. For net capital purposes, it reduces the firm’s net worth. Such assets could be accounts receivable that are not collected within 30 day period.

What is finra Focus report?

A FINRA Financial and Operational Combined Uniform Single (FOCUS) report includes a balance sheet, income statement, net capital calculation, and equity reconciliation. The intent is to demonstrate to regulators the financial position of the firm and its ability to maintain sufficient net capital.

Who files a focus report?

The eFOCUS system provides firms with the capability to electronically submit their Financial and Operational Combined Uniform Single (FOCUS) Reports to FINRA. FINRA member firms are required to compose and submit FOCUS reports to FINRA pursuant to SEC Rule 17a-5.

What is 15c3 lockup?

If the amount owed to clients exceeds the owed from clients, the firm must lock up a portion thereof (the calculation being dictated by Rule 15c3-3) in a “Special Reserve Bank Account for the Exclusive Benefit of Customers.” The cash and securities segregated therein cannot be used by the firm for any purpose, such as …

What are 15c3 deposits?

SEC Rule 15c3–3 provides regulatory safeguards over customers’ funds and securities held by brokers and dealers. It requires every broker or dealer to maintain with an insured depository institution(s) an account separate from any other bank account of the broker or dealer at all times when deposits are required.

What is required for a focus report?

What is Focus Report?

Related Content. An SEC form (Financial and Operational Combined Uniform Single Report) on which a US registered broker-dealer reports to the SEC and its primary SRO its net capital position as calculated under SEC Rule 15c3-1 (the SEC net capital rule) on a monthly or quarterly basis.

What time is FINRA report released?

FINRA requires firms to report short interest positions in all customer and proprietary accounts in all equity securities twice a month. All short interest positions must be reported by 6 p.m. Eastern Time on the second business day after the reporting settlement date designated by FINRA.