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SEC Rule 15c3-3

Regulates the custody and protection of customer securities and funds by broker-dealers, aiming to prevent broker-dealers from using customer assets for their own purposes.

Rule Overview

Jurisdiction: United States

Regulator: SEC

Topic: Consumer Protection

Overview
Latest News
Further Reading

This rule requires broker-dealers to maintain a reserve account and segregate customer securities to prevent use for own purposes, ensuring the safety and security of customer assets.

It specifies requirements for broker-dealers to hold customer securities in a separate account, known as a “special custody account” or “control location”, and to maintain a reserve account with a bank, which must contain a certain percentage of the total customer credits.

The rule also outlines procedures for buying in securities, resolving short positions, and obtaining extensions of time.

Latest News

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Further Reading

FINRA SEA Rule 15c3-3 and Related Interpretations Go to https://www.finra.org/rules-guidance/guidance/interpretations-financial-operational-rules/sea-rule-15c3-3-and-related-interpretations CFR 2010 Go to https://www.govinfo.gov/content/pkg/CFR-2010-title17-vol3/pdf/CFR-2010-title17-vol3-sec240-15c3-3.pdf