8 Jul 2025
📈SEC Proposal on Risk Management Controls for Broker-Dealers
Proposed Collection; Comment Request; Extension: Rule 15c3-5
Summary
The SEC is seeking comments on the proposed information collection related to Rule 15c3-5, which requires broker-dealers to establish and document risk management controls and supervisory procedures. The requirements include annual CEO certifications and regular evaluations of these controls, promoting stronger regulatory compliance in the financial sector.
Agencies
- Securities and Exchange Commission
Business Impact
$$$ - High
The text details Rule 15c3-5, which mandates broker-dealers to implement and document risk management controls and supervisory procedures. Compliance requires significant time and costs for firms, resulting in an annual internal cost of approximately $35.83 million and external costs of $10.25 million, impacting financial resources and operational procedures.