Wednesday, July 01. 2020
SEC Updates Filing Threshold to Rule 17h Reporting Requirements for Broker-Dealers
The SEC’s Office of Inspector General published an order this year which stated that raising the reporting threshold for Form 17-H would, among other things, increase the overall efficiency of the Form 17-H filing intake along with its review processes. This change would also reduce the reporting burden on smaller broker-dealer firms. The new changes are in line with these recommendations by altering the filing threshold for the first time and providing an exemption from the 17h Rules for broker-dealers with capital between $20 million to $50 million so long as the broker-dealer maintains less than $1 billion in total assets. While continuing to provide important information to the SEC on the financial condition of covered broker-dealers and their affiliates, the changes now exempt certain smaller broker-dealers from the reporting requirements of the rules. Firms maintaining $50 million or more in capital, including subordinated debt, currently account for approximately 98 percent of the total capital of the broker-dealers subject to the 17h Rules; these firms will continue to remain subject to the rules.
The exemptive order is effective immediately.
Sources:
SEC Updates Filing Threshold to Rule 17h Reporting Requirements for Broker-Dealers (www.sec.gov)