FINRA Updates Guidance On Financial And Operational Rules

FINRA updated its guidance concerning SEA Rules 15c3-1 ("Net capital requirements for brokers or dealers") and 15c3-3 ("Customer protection-reserves and custody of securities"). The updates to the Interpretations of Financial and Operational Rules were communicated to FINRA by the SEC Division of Trading and Markets.

The latest interpretations relate to:

• SEA Rule 15c3-1(c)(1)(i) concerning the indebtedness in the proprietary trading account of a broker-dealer;
• SEA Rule 15c3-1(c)(2)(i)(G) concerning services arrangements with a parent or an affiliate;
• SEA Rule 15c3-1(c)(2)(iv)(B) concerning deficits or unsecured balances in securities transactions with a Federal Reserve bank;