Maven Strategic | Outsourced Financial Operations Principal (FINOP) Services

(877) 448-5282
  • Home
  • Core Services
    • FINOP Services
    • Outsourced CFO Services
    • Broker/Dealer Services
      • Broker/Dealer Reporting
      • Compliance & Operations Support
      • Human Resources and Employee Benefits
    • Other Services
  • About Us
    • Our Story
    • Our Mavens
    • Client Testimonials
  • The Maven Market
    • Contact Maven Market
    • The Maven Market Listings
  • Blog & Resources
    • Blog
    • Resources

Amended SEC Rule 17a-5(d) – Exemption or Compliance Report requirement effective June 2014

October 12, 2014 by mavenstrategic

In accordance with the amended SEC Rule 17a-5(d),Broker/Dealer’s are now required to file annually either a compliance report or an exemption report. If your firm did not claim an exemption from Rule 15c3-3 (carrying brokers) for part or all of the year, you are required to file a compliance report. The compliance report must include statements as to whether the firm established and maintained internal control over compliance, if such controls were effective, if the firm was in compliance with SEC Rule 15c3-1 and paragraph (e) of Rule 15c3-3 for the most recent year. If there were material weaknesses, the firm must identify each weakness, and also disclose any non-compliance with 15c3-1 and paragraph (e) of 15c3-3. If your firm did claim exemption from Rule 15c3-3 for the most recent year, you are required to file a compliance report. The exemption report requires 3 straightforward statements in response to the following: 1) What exemption did the firm claim during the most recent year, 2) Did the firm meet the exemptive provisions, and were they without exception, 3) if there were any exceptions, what were they. While this amendment is new and has no precedent or real guidance, the requirements are clear (especially for those firms required to prepare and file an exemption report). Of course, auditors of Broker/Dealers are required, under PCAOB Attestation Standard No. 2 to review the compliance and exemption reports prepared by a Broker/Dealer (see http://pcaobus.org/Standards/Attestation/Pages/AT2.aspx).

Filed Under: Blog Tagged With: amended SEC Rule 17a-5, Broker Dealer reporting requirements, Broker/Dealer audits, Compliance Report, Exemption Report, SEC Rule 17a-5, SEC Rule 17a-5(d)

Copyright © 2023 · Maven Strategic Solutions, LLC
Contact us at (877) 448-5282