The opening remarks included the origin of the financial responsibility rule and SEA Rule 17a-5.

This introduction highlighted:

- The impact of Dodd-Frank and the Wall Street Reform Act on the broker-dealer industry
- Reporting requirements for broker-dealers pursuant to SEC Rule 17a-5
- High-level audit considerations related to the examination of the compliance report and supplemental schedules

Speaker:

Jeff Walling
Partner
KPMG LLP 

Objectives of this session:

1. Understand the key provisions of SEC Rule 15c3-1 – Gain a comprehensive understanding of the requirements and obligations outlined in SEC Rule 15c3-1, also known as the Uniform Net Capital Rule, including the computation of capital and minimum capital requirements.

2. Identify operational considerations and best practices – Explore the operational considerations related to SEC Rule 15c3-1, such as secured financing deficits and fails, and learn best practices for compliance.

3. Apply audit considerations and ensure compliance – Learn about the audit considerations specific to SEC Rule 15c3-1, including the areas to focus on during the audit process and how to evaluate a broker-dealer's adherence to the rule. Develop the skills and knowledge necessary to assess compliance and provide assurance over compliance with the rule.

Speakers:

Alena Portnoy
Vice President, Regulatory – US Institutional Broker & Swap Dealers
Jefferies

Zohaib Qamer
Partner
Citrin Cooperman & Co. LLP

 Objectives of this session:

 1. Understand the key provisions of SEC Rule 15c3-3 – Gain a comprehensive understanding of the requirements and obligations outlined in SEC Rule 15c3-3, also known as the Customer Protection Rule, including the definition of customers, non-customers, and Proprietary Account of Broker-Dealers (PAB), as well as the control of securities and good control locations.

2. Identify operational considerations and best practices – Explore the operational considerations related to SEC Rule 15c3-3, such as fails and suspense accounts, and learn best practices for compliance. Understand how to effectively manage transaction failures and maintain proper control over customer securities and funds.

3. Apply audit considerations and ensure compliance – Learn about the audit considerations specific to SEC Rule 15c3-3, including the areas to focus on during the audit process and how to evaluate a broker-dealer's adherence to the rule. Develop the skills and knowledge necessary to assess compliance and provide assurance over the protection of customer securities and assets.

Speakers:

Natelli Abramov
Vice President
Fidelity Institutional

Jeff Walling
Partner
KPMG LLP

Objectives of this Part 1: SEC Rule 17A-13 session:

1. Understand the key provisions of SEC Rule 17a-13 – Provide an overview of the rule, which requires broker-dealers to conduct quarterly securities counts to verify their physical possession or control of securities.  

2.  Identify operational considerations – Discuss how the rule impacts other Financial Responsibility Rules, and important operational steps to consider when performing the procedures. 

3.  Apply audit considerations and best practices – Discuss the key elements of the Internal Controls Over Compliance for Rule 17A-13, and related common audit findings.

Objectives of Part 2: FINRA Rule 2231 session:

1. Understand the key provisions of FINRA Rule 2231 – Provide an overview of the rule, which requires broker-dealers to send Account Statements to customers.

2. Identify operational considerations – Discuss how the rule impacts other Financial Responsibility Rules, and the important operational steps a broker-dealer should have in place to comply with the rule. 

3. Apply audit considerations and best practices – Discuss the key elements of the Internal Controls Over Compliance for FINRA 2231, and related common audit findings.  

Speaker:
Jason Gould

Director

Barclays

Speaker:

Christy Schaffner

Managing Director, Head of US Regulatory Reporting, Nomura

Chair, SIFMA FMS