📈SEC Rule 15c3-5 Compliance Requirements for Brokers
Agency Information Collection Activities; Submission for OMB Review; Comment Request; Extension: Rule 15c3-5
Summary
The SEC is seeking an extension for information collection under Rule 15c3-5, which mandates brokers to implement and document risk management controls and procedures. This includes annual certifications from executives, comprehensive documentation, and regular reviews to manage the financial risks of trading activities effectively. Compliance with this rule is essential for broker-dealers accessing exchanges or alternative trading systems.
Agencies
- Securities and Exchange Commission
Business Impact
$$$ - High
The regulatory text discusses compliance requirements under Rule 15c3-5 for brokers or dealers, necessitating robust risk management practices. The substantial burden of 80,000 hours and an estimated total cost of approximately $46 million annually highlights critical implications for financial resources and operational procedures for affected businesses.