SEC Net Capital Rule 15c3-1
October 22, 2014, Chicago October 23, 2014, New York City
Registration Fee: US$995.00 Register
Beginner/Intermediate Level, 7 CPE Credits
Instructor: Thomas Santulli
Hours: 9:00 am - 5:00 pm; Registration/Breakfast begins at 8:30 am
Chicago Location: Club Quarters Hotel, 75 E. Wacker Dr., Chicago Directions
New York City Location: Club Quarters Hotel, 52 William Street (Wall Street Area) Directions
Background History of the Rule
- Pre-1934 SEC regulation
- Securities & Exchange Acts of 1933 & 1934
- Pre 1975 SEC/NYSE regulations and reporting requirements
- The paperwork crisis and broker dealer failures
- Securities Investor Protection Act
- Capital adequacy and customer asset protection rules
Current Financial/Operational/Record Keeping Requirements
- Books and records requirements SEC Rules 17a-3,4,5
- Firm and customer asset segregation SEC Rule 15c 3-3
- Net Capital Liquidity Requirements SEC rule 15c3-1
Financial/Operational Reporting Requirements
- The FOCUS Report and Annual Audit Report
- Rule 15c3-3 Reserve requirements Cash vs. Securities
- SEC/FINRA regulatory oversight and exception reporting
Broker/Dealer Accounting
- GAAP accounting
- Recording securities locations
- Unique transactions-Deliveries-Lending-Subordinated Debt
The Net Capital Computation
- Minimum Net Capital “24/7” requirements
- Types of Broker/Dealers
- Aggregate Indebtedness (“AI”) vs. Aggregate Debits (“ADI”)
- Debt to Net Worth requirements
- Components of the computation
The Net Capital Computation (Continued)
- Non Allowable Assets-noncurrent and unsecured
- Operational penalties
- Marketable and non-marketable Securities
- Securities “Haircuts” categorization and optimization
- Contractual commitments and moment in time requirements
Pending Issues