Customer Protection Rule 15c3-3

Participants become involved with the component parts of security brokerage that flow into the development of the report as required under 15c3-3, Customer Protection Rule. Who must file, when and what actions must be taken for failure to do so are explained. Among the areas focused on are Margin, Seg, Possession or Control, and the Stock Record. The program concludes with participants completing a Customer Protection report by culling information from a Brokerage firm's balance sheet.

No sessions currently available. Contact client services to get the next available date.
CPE CREDITS
7
Brokerage accounting personnel; brokerage compliance and legal personnel; brokerage receive and deliver, cashiering, stock loan/borrow personnel; regulatory personnel; industry utilities personnel
No advance preparation required.
Students will be able to:
  • Be familiarized with the component parts of the rule
  • Differentiate between Possession and Control vs. good location
  • Understand the terminologies that form the origin of the 15c3-3 computation
  • Perform hands on accounting exercises for the 15c3-3 computation
  • Demonstrate familiarization with the Standard and Alternative method of computing Net Capital
An understanding of cash and brokerage accounting and brokerage trade processing.
"Instructor's knowledge of the subject matter was a true strength in the course."
Day 1
Securities regulation overview
  • Securities exchange act of 1933-1934
  • Securities & exchange commission
  • Self-Regulatory Organization (SRO)

SEC rule 15c3-3

  • Customer protection rule
  • Net Capital Rule
  • FOCUS report
  • Securities and funds protection
  • Firm vs. customer-related business
  • Liquidation of insolvent B/D
  • Special reserve bank account

Definitions

  • Customer
  • Omnibus account vs. Fully disclosed
  • Fully paid securities vs. margin securities
  • Qualified security
  • Posession vs. Control

Broker-dealer operations

  • Transaction cycle
  • Margined Securities and funding
  • Seg control
  • Settlement allocations
  • Stock record memo fields

Protection of customer securities

  • Possession or control
  • Control locations
  • Accomplish vs. Instructional seg

Reserve formula computation

  • Comparison between debits and credits
  • Exemptions
  • SEC exemptions
  • Frequency of computation

Reserve formula - Credit side

  • Customer credit balances
  • Customer bank/security loan
  • Customer fail to receive
  • Credits in firm accounts
  • Short stock dividends and distributions
  • Short security differences
  • Suspense accounts
  • Unconfirmed transfers

Reserve formula- Debit side

  • Customer debit balances
  • Partly secured accounts
  • Special omnibus or similar accounts
  • Undue concentration
  • Securities borrowed for customer transactions
  • Fail to deliver of customer securities
  • Margin required by options clearing corporation

Work Exercises

  • Trial Balance account selection
  • Minimizing reserve deposit
  • Optimization of Seg
  • Standard and Alternate method computations

Clients who register for this course will receive a complimentary 3 month subscription to the Financial Times and FT.com. The Financial Times is the world's most respected financial newspaper, providing a broad assessment on finance, business and the industrial sector. Subscriptions will start within 6-8 weeks of the application process and are limited to one per client. For questions about your subscription, call 800-628-8088 or email uscirculation@ft.com. U.S. enrollees only. (All non-U.S. enrollees will receive a subscription to FT.com only.) Lunch included for all students taking day classes.

Lunch included for all students taking day classes.