What is a good control location?

What is a good control location?

Footnote 13 of the SEC/FINRA staff statement explains that a good control location is based, in part, on the entity’s ability to maintain exclusive control over customer securities, and that a bank constitutes a good control location.

What is required by sea 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.

Is a transfer agent a good control location?

Depending on the type of securities, third-party custodians such as the Depository Trust Company, or an issuer’s transfer agent, may serve as “good control locations”. These methods of asset custody protect clients from broker-dealer misappropriation and failure.

What’s the big deal about Rule 15c3-3?

Rule 15c3-3 requires banks to compare what they owe clients and what clients owe them on at least a weekly basis, and safeguard the difference representing what they owe clients, on a net basis.

What’s the big deal about Rule 15c3 3?

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 FINRA means?

Understanding the Financial Industry Regulatory Authority (FINRA) and FINRA Rules. The Financial Industry Regulatory Authority, or FINRA, is a self-regulatory organization that oversees and regulates the actions of its members. Members of FINRA include exchange markets and brokerage firms.

How do you use FINRA?

How to Apply

1. Step 1: Reserve Your Firm’s Name.
2. Step 2: Sign up for System Access.
3. Step 3: Pay Your Application Fees.
4. Step 4: Meet FINRA’s Standards of Admission.
5. Step 5: Submit Form BD Online.
6. Step 6: Mail Hard-Copy Form BD.
7. Step 7: Submit All Additional Required Forms.
8. Step 8: Submit Fingerprints.

What is 15c3 lock up?

Introduction. ◆ Rule 15c3-3 of the SEC (Customer Protection Reserves and Custody of Securities) requires broker dealers that hold. customer securities to obtain and maintain possession and control of fully paid and excess margin securities they hold for customers.