SEC Net Capital Rule 15c3-1

Price: $995   Register now

Recommended that you register at least two weeks in advance.

Course Features

  • Course date:10/11/2019
  • Course Duration: 1 Day
  • Level: Beginner-intermediate
  • Prerequisites: None
  • Method: Live & Virtual
  • Venue: MicroTek
  • Time: 9:00 am – 5:00 pm
  • Dress Code: Business Casual

SEC Net Capital Rule 15c3-1

William Jannace, a former securities regulator with the NYSE and FINRA has developed a comprehensive course the SEC Net Capital rule covering:  SEC and FINRA requirements and interactions impacting net capital compliance as well as an overview on broker-dealer structures and operations that impact capital requirements. This course is designed for new compliance, supervisory and technology professionals to the industry, attorneys and other compliance professionals career transitioning and an excellent primer for those considering a career as a regulator.

Course Outline

Background History of the Rule

  • Pre-1934 SEC regulation
  • Securities Act of 1933 & 1934
    • IPOs
    • AAUs-Firm Commitment Underwritings
  • Pre-1975 SEC/NYSE regulations and reporting requirements
  • The paperwork crisis and broker dealer failures
  • Securities Investor Protection Act
  • Securities Exchange Act of 1934
    • Rule 15c3-1
    • 17a-11 notifications
    • FINRA Requirements
    • Rule 4110
    • Rule 4120
    • Rule 9557
  • Capital adequacy and customer asset protection rules
  • Overview of Broker-Dealer Functions
    • Short Selling/Securities Lending
    • Clearing Agreements
      • Omnibus
      • Fully-Disclosed
        • Allocation of Functions
  • 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
    • Customer Protection
      • Segregation Allocation Management
      • Case Study
    • Withdrawing Capital
      • FOCUS Filings
      • Red Flags
    • Margin Requirements
      • Operational Red Flags
    • Account Transfers
      • Regulatory Focus

Net Capital Liquidity Requirements SEC rule 15c3-1

  • 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”)
    • 15c3-3 Computation
  • 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
    • Undue Concentration Charges

Contractual commitments and moment in time requirements

Instructor

  • William Jannace   has over 30 years of experience in the securities industry as a regulator at the American Stock Exchange, the New York Stock Exchange and at FINRA. As a senior counsel at Ross PLLC, he  advises clients across a range of applications and compliance needs. Currently he is also focused on blockchain industry related …
    Continue reading William Jannace