SEC-PR-2412-211 (Dec. 20, 2024) (SEC-PR-2412) SEC Adopts Rule Amendments to the Broker-Dealer Customer Protection Rule Excerpt: Washington D.C., Dec. 20, 2024 — The Securities and Exchange Commission today adopted amendments to Rule 15c3-3 (the customer protection rule) to require certain broker-dealers to increase the frequency with which they perform computations of the net cash they […]
Category: Consumer Protection Rule
The Customer Protection Rule, also known as Exchange Act Rule 15c3-3, is a crucial regulation that safeguards customer funds and securities held by broker-dealers. It requires firms to segregate customer assets from their own, maintain physical possession of fully-paid securities, and report any discrepancies promptly. This rule, enforced by the SEC, aims to protect investors and maintain the integrity of the financial markets. Recent amendments, effective December 20, 2024, enhance the rule’s effectiveness in light of evolving market conditions.