81 FR 14372 - Securities Investor Protection Corporation
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 52 (March 17, 2016)
Federal Register Volume 81, Issue 52 (March 17, 2016)
| Page Range | 14372-14374 | |
| FR Document | 2016-06041 |
[Federal Register Volume 81, Number 52 (Thursday, March 17, 2016)] [Rules and Regulations] [Pages 14372-14374] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-06041] ======================================================================= ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION 17 CFR Part 300 [Release No. SIPA-175; File No. SIPC-2015-01] Securities Investor Protection Corporation AGENCY: Securities and Exchange Commission. ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: The Securities and Exchange Commission (``Commission'') is approving a proposed rule change filed by the Securities Investor Protection Corporation (``SIPC''). The rule change adds SIPC Rule 600, entitled ``Rules Relating to Supplemental Report of SIPC Membership.'' Because SIPC rules have the force and effect as if promulgated by the Commission, those rules are published in Title 17 of the Code of Federal Regulations, where the rule change will be reflected. DATES: Effective March 31, 2016. FOR FURTHER INFORMATION CONTACT: Michael A. Macchiaroli, Associate Director, at (202) 551-5525; Thomas K. McGowan, Associate Director, at (202) 551-5521; Randall W. Roy, Deputy Associate Director, at (202) 551-5522; Timothy C. Fox, Branch Chief, at (202) 551-5687; Rose Russo Wells, Senior Counsel, at (202) 551-5527; Office of Financial Responsibility, Division of Trading and Markets, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-7010. SUPPLEMENTARY INFORMATION: The Commission is approving a proposed rule change filed by SIPC, adding SIPC Rule 600, 17 CFR 300.600. I. Background On April 17, 2015, SIPC filed a proposed rule change with the Commission under section 3(e)(2)(A) of the Securities Investor Protection Act of 1970 (``SIPA''),\1\ and subsequently filed amendments to the proposed rule change on June 23, 2015, July 24, 2015, and September 29, 2015. The proposed rule change would add SIPC Rule 600 (``Rule 600''), entitled ``Rules Relating to Supplemental Report of SIPC Membership.'' Notice requesting comment on the proposed rule change, as amended, was published in the Federal Register on November 4, 2015.\2\ The Commission received one comment on the proposal.\3\ The Commission is approving the proposed rule change under section 3(e)(2) of SIPA.\4\ --------------------------------------------------------------------------- \1\ 15 U.S.C. 78ccc(e)(2)(A). \2\ See Securities Investor Protection Corporation, Release No. SIPA-173 (Oct. 28, 2015), 80 FR 68286 (Nov. 4, 2015). \3\ See email from Paul W. Lameo to Michael A. Macchiaroli dated December 22, 2015. The comment requested clarification regarding a number of technical questions concerning the process for filing reports with SIPC. SIPC intends to issue Frequently Asked Questions to respond to those and other technical questions. \4\ Under SIPA, to be final, rules proposed by SIPC must be approved by the Commission. See 15 U.S.C. 78ccc(e)(2). --------------------------------------------------------------------------- II. Proposed Rule Change Pursuant to SIPA and SIPC Bylaws, broker-dealers that are SIPC members pay semi-annual assessments to SIPC at the mid-point and at the end of their fiscal year.\5\ The assessment payments are the main source of funding for the SIPC Fund. The amount of the assessment a broker-dealer must pay is based on the firm's revenues from its securities business.\6\ Consequently, in relation to the payment of the assessments, a broker-dealer must file with SIPC a Form SIPC-6 (General Assessment Payment Form) with the mid-year assessment and a Form SIPC-7 (General Assessment Reconciliation Form) with the year-end assessment. These forms show the broker-dealer's calculation of the assessment amount based on its revenues from its securities business.\7\ --------------------------------------------------------------------------- \5\ See 15 U.S.C. 78ddd(c); SIPC Bylaws, Article 6. \6\ See 15 U.S.C. 78ddd(c) and (d). \7\ Form SIPC-7 provides that the broker-dealer may deduct from the end of fiscal year assessment the amount paid mid-year with the filing of the Form SIPC-6. --------------------------------------------------------------------------- Broker-dealers that limit their business to certain specified activities or conduct their business outside of the United States are exempt from being members of SIPC.\8\ Consequently, these broker- dealers do not pay a SIPC assessment. However, they must file a [[Page 14373]] Form SIPC-3, which is a certification by the broker-dealer that it is excluded from SIPC membership under SIPA. --------------------------------------------------------------------------- \8\ See 15 U.S.C. 78ccc(a)(2)(A). --------------------------------------------------------------------------- In 1972, as a result of significant discrepancies between the assessment information reported to SIPC on the Forms SIPC-6 and SIPC-7 and information supplied in reports filed with the Commission on which the calculation of the assessment was based, the Commission amended Rule 17a-5 \9\ (the broker-dealer reporting rule).\10\ As amended, the rule generally requires broker-dealers to file with the Commission a SIPC supplemental report.\11\ The SIPC supplemental report includes a schedule of assessment payments or a statement that the broker-dealer qualified for exclusion from membership in SIPC. The SIPC supplemental report also must include a report of an independent public accountant, who must be engaged to perform certain procedures specified in Rule 17a-5 with respect to the information provided in the report.\12\ --------------------------------------------------------------------------- \9\ 17 CFR 240.17a-5. \10\ See Report of Securities Investor Protection Corporation Assessments, Exchange Act Release No. 9766 (Sep. 15, 1972), 37 FR 18909 (Sep. 16, 1972). \11\ See 17 CFR 240.17a-5(e)(4). \12\ The items that must be included in the report and the procedures to be performed by the accountant are listed in paragraphs (e)(4)(ii)(A), (B), and (C) of Rule 17a-5. --------------------------------------------------------------------------- On July 30, 2013, the Commission amended Rule 17a-5.\13\ As part of this rulemaking, the Commission determined that because Forms SIPC-3, SIPC-6, and SIPC-7 are used solely by SIPC for purposes of levying its assessments, the SIPC supplemental report should be filed only with SIPC. The Commission also determined that SIPC should prescribe the form and content of the SIPC supplemental report. Accordingly, the Commission amended paragraph (e)(4) of Rule 17a-5 to provide that a broker-dealer must file a SIPC supplemental report with SIPC that contains such information and is in such format as determined by SIPC by rule and approved by the Commission.\14\ --------------------------------------------------------------------------- \13\ See Broker-Dealer Reports, Exchange Act Release No. 70073 (Jul. 30, 2013), 78 FR 51910 (Aug. 21, 2013) (``Broker-Dealer Reports''). \14\ See Broker-Dealer Reports, 78 FR 51926-7, 51991, 17 CFR 240.17a-5(e)(4)(i). --------------------------------------------------------------------------- The rule change approved by the Commission adds SIPC Rule 600, entitled ``Rules Relating to Supplemental Report of SIPC Membership.'' \15\ The purpose of Rule 600 is to replace the requirements currently in Rule 17a-5 prescribing the information that must be included in, and the format of, the SIPC supplemental report.\16\ The requirements of Rule 600 are modeled on the requirements of Rule 17a-5.\17\ For example, Rule 600 requires that the SIPC supplemental report include, among other things, a copy of the Form SIPC-7 filed or a schedule of assessment payments showing any overpayments applied and overpayments carried forward, including payment dates and amounts; or, if exclusion from membership was claimed, a statement that the broker-dealer qualified for exclusion from membership under SIPA and the date the Form SIPC-3 was filed with SIPC.\18\ Further, Rule 600 requires that the SIPC supplemental report include a report of an independent public accountant who is engaged to perform the following agreed-upon procedures: --------------------------------------------------------------------------- \15\ 17 CFR 300.600. \16\ See 17 CFR 240.17a-5(e)(4)(ii). Rule 17a-5 provides that broker-dealers are required to file the SIPC supplemental reports pursuant to the requirements in paragraph (e)(4)(ii) of the rule until the earlier of the Commission approving a rule adopted by SIPC or two years from the effective date of the amendment (that is, by June 14, 2016). See 17 CFR 240.17a-5(e)(4)(ii). Consequently, if, after two years from the effective date no such SIPC rule has been approved, broker-dealers would no longer be required to file the reports. \17\ Compare Rule 600, with 17 CFR 240.17a-5(e)(4)(ii). \18\ Compare Rule 600(b)(i) and (ii), with 17 CFR 240.17a- 5(e)(4)(ii). ---------------------------------------------------------------------------Compare assessment payments made in accordance with Form SIPC-6 and applied to the general assessment calculation on Form SIPC-7 with respective cash disbursements record entries; For all or any portion of a fiscal year, compare amounts reflected in the audited financial statements required by Commission rule with amounts reported in Form SIPC-7; Compare adjustments reported in Form SIPC-7 with supporting schedules and working papers supporting the adjustments; Verify the arithmetical accuracy of the calculations reflected in Form SIPC-7 and in the schedules and working papers supporting any adjustments; and Compare the amount of any overpayment applied with the Form SIPC-7 on which it was computed; or If exclusion from membership is claimed, compare the income or loss reported in the audited financial statements required by Commission rule with Form SIPC-3.\19\ --------------------------------------------------------------------------- \19\ Compare Rule 600(b)(iii), with 17 CFR 240.17a-5(e)(4)(ii). Consistent with requirements in Rule 17a-5 regarding the independent public accountant that is engaged to prepare reports covering the annual reports of a broker-dealer, Rule 600 provides that the independent public accountant who is engaged to perform the enumerated agreed-upon procedures must be independent in accordance with the provisions of 17 CFR 210.2-01 and that the accountant must be engaged to perform the enumerated agreed-upon procedures in accordance with standards of the Public Company Accounting Oversight Board. See Rule 600(b)(iii); 17 CFR 240.17a-5(f)(1) and (g). --------------------------------------------------------------------------- Rule 600 also incorporates prior relief by providing that a SIPC member broker-dealer is exempt from filing the supplemental report if the broker-dealer reports $500,000 or less in total revenue in its ``annual audited statement of income'' filed with the Commission.\20\ --------------------------------------------------------------------------- \20\ See Rule 600(a)(ii). --------------------------------------------------------------------------- Finally, Rule 600 provides that a broker-dealer must file the supplemental report within 60 days after the end of its fiscal year. III. Discussion and Commission Action Section 3(e)(2)(A) of SIPA provides that the SIPC Board of Directors must file with the Commission any proposed amendment to a SIPC Rule.\21\ Section 3(e)(2)(B) of SIPA provides that within thirty- five days of the date of publication of the notice of filing of a proposed rule change in the Federal Register, or within such longer period (1) as the Commission may designate of not more than ninety days after such date if it finds such longer period to be appropriate and publishes its reasons for so finding or (2) as to which SIPC consents, the Commission shall: (i) By order approve such proposed rule change or (ii) institute proceedings to determine whether such proposed rule change should be disapproved.\22\ Further, section 3(e)(2)(D) of SIPA provides that the Commission shall approve a proposed rule change if it finds that the proposed rule change is in the public interest and is consistent with the purposes of SIPA.\23\ --------------------------------------------------------------------------- \21\ 15 U.S.C. 78ccc(e)(2)(A). \22\ 15 U.S.C. 78ccc(e)(2)(B). SIPC has agreed to two 60-day extensions; consequently, the Commission must act no later than April 7, 2016. See emails from Hemant Sharma, Associate General Counsel, SIPC, to Randall W. Roy, Deputy Associate Director, Commission, dated December 3, 2015 and February 1, 2016. \23\ 15 U.S.C. 78ccc(e)(2)(D). --------------------------------------------------------------------------- The Commission finds, pursuant to section 3(e)(2)(D) of SIPA, that the proposed rule change is in the public interest and consistent with the purposes of SIPA. First, as noted above, paragraph (e)(4) of Rule 17a-5 provides that the broker-dealer must file with SIPC a report on the SIPC annual general assessment reconciliation or exclusion from membership forms that contains such information and is in such format as determined by SIPC by rule and approved by the Commission. SIPC uses broker-dealers' SIPC supplemental reports to evaluate whether broker- dealers calculate their SIPC assessments correctly. These [[Page 14374]] assessments are the main source of funding for the SIPC Fund. The Commission determined that because Forms SIPC-3, SIPC-6, and SIPC-7 are used solely by SIPC for purposes of levying its assessments, SIPC should prescribe by rule the form and content of the SIPC supplemental report. Rule 600 prescribes the form and content of the report, in accordance with paragraph (e)(4) of Rule 17a-5. Second, Rule 600 is modelled on existing requirements in Rule 17a-5 prescribing the information that must be included in, and the format of, the SIPC supplemental report. Accordingly, the Commission finds that Rule 600 is in the public interest and is consistent with the purposes of SIPA. It is therefore ordered by the commission, pursuant to section 3(e)(2) of SIPA, that the above-mentioned proposed rule change is approved. In accordance with section 3(e)(2) of SIPA, the approved rule change shall be given the force and effect as if promulgated by the Commission. IV. Statutory Authority Pursuant to SIPA, 15 U.S.C. 78aaa et seq., and particularly, section 3(e)(15 U.S.C. 78ccc(e), SIPC is adding section 300.600 of Title 17 of the Code of Federal Regulations in the manner set forth below. List of Subjects in 17 CFR Part 300 Brokers, Securities. Text of the Amendments In accordance with the foregoing, Title 17, Chapter II of the Code of Federal Regulations is amended as follows: PART 300--RULES OF THE SECURITIES INVESTOR PROTECTION CORPORATION 0 1. The authority citation for part 300 continues to read as follows: Authority: 15 U.S.C. 78ccc. 0 2. Add an undesignated center heading and Sec. 300.600 to read as follows: Rules Relating to Supplemental Report on SIPC Membership Sec. 300.600 Rules relating to supplemental report on SIPC membership. (a)(1) Who must file the supplemental report. Except as provided in paragraph (a)(2) of this section, a broker or dealer must file with SIPC, within 60 days after the end of its fiscal year, a supplemental report on the status of its membership in SIPC (commonly referred to as the ``Independent Accountants' Report on Applying Agreed-Upon Procedures'') if a rule of the Securities and Exchange Commission (SEC) requires the broker or dealer to file audited financial statements annually. (2) If the broker or dealer is a member of SIPC, the broker or dealer is not required to file the supplemental report for any year in which it reports $500,000 or less in total revenues in its annual audited statement of income filed with the SEC. (b) Requirements of the supplemental report. The supplemental report must cover the SIPC Annual General Assessment Reconciliation Form (Form SIPC-7) or the Certification of Exclusion From Membership Form (Form SIPC-3) for each year for which an SEC Rule requires audited financial statements to be filed. The supplemental report must include the following: (1) A copy of the form filed or a schedule of assessment payments showing any overpayments applied and overpayments carried forward, including payment dates, amounts, and name of SIPC collection agent to whom mailed; or (2) If exclusion from membership was claimed, a statement that the broker or dealer qualified for exclusion from membership under the Securities Investor Protection Act of 1970, as amended, and the date the Form SIPC-3 was filed with SIPC; and (3) An independent public accountant's report. The independent public accountant, who must be independent in accordance with the provisions of 17 CFR 210.2-01, must be engaged to perform the following agreed-upon procedures in accordance with standards of the Public Company Accounting Oversight Board (PCAOB): (i) Compare assessment payments made in accordance with the General Assessment Payment Form (Form SIPC-6) and applied to the General Assessment calculation on the Form SIPC-7 with respective cash disbursements record entries; (ii) For all or any portion of a fiscal year, compare amounts reflected in the audited financial statements required by an SEC rule with amounts reported in the Form SIPC-7; (iii) Compare adjustments reported in the Form SIPC-7 with supporting schedules and working papers supporting the adjustments; (iv) Verify the arithmetical accuracy of the calculations reflected in the Form SIPC-7 and in the schedules and working papers supporting any adjustments; and (v) Compare the amount of any overpayment applied with the Form SIPC-7 on which it was computed; or (vi) If exclusion from membership is claimed, compare the income or loss reported in the audited financial statements required by an SEC rule with the Form SIPC-3. By the Commission. Dated: March 14, 2016. Robert W. Errett, Deputy Secretary. [FR Doc. 2016-06041 Filed 3-16-16; 8:45 am] BILLING CODE 8011-01-P
![14372 Federal Register / Vol. 81, No. 52 / Thursday, March 17, 2016 / Rules and Regulations
(ECIs) of the centrifugal compressor S.A., 40220 Tarnos, France; phone: 33 (0)5 59 I. Background
(inducer). Use Accomplishment Instructions, 74 40 00; fax: 33 (0)5 59 74 45 15.
paragraph 6.B.(1)(b) of Turbomeca S.A. Alert (4) You may view this service information On April 17, 2015, SIPC filed a
Mandatory Service Bulletin (MSB) No. A249 at FAA, Engine & Propeller Directorate, 1200 proposed rule change with the
72 0100, Version H, dated May 21, 2015 to District Avenue, Burlington, MA. For Commission under section 3(e)(2)(A) of
do the inspections. Use Appendix 1 of information on the availability of this the Securities Investor Protection Act of
Turbomeca S.A. Alert MSB No. A249 72 material at the FAA, call 781–238–7125. 1970 (‘‘SIPA’’),1 and subsequently filed
0100, Version H, dated May 21, 2015 for the (5) You may view this service information amendments to the proposed rule
schedule of inspections. at the National Archives and Records change on June 23, 2015, July 24, 2015,
(3) Perform initial and repetitive borescope Administration (NARA). For information on and September 29, 2015. The proposed
inspections (BSIs) of the centrifugal the availability of this material at NARA, call rule change would add SIPC Rule 600
compressor inducer. Use Accomplishment 202–741–6030, or go to: http://
(‘‘Rule 600’’), entitled ‘‘Rules Relating to
Instructions, paragraphs 6.B.(1)(a) of www.archives.gov/federal-register/cfr/ibr-
locations.html. Supplemental Report of SIPC
Turbomeca S.A. Alert MSB No. A249 72
0100, Version H, dated May 21, 2015 to do
Membership.’’ Notice requesting
Issued in Burlington, Massachusetts, on comment on the proposed rule change,
the inspections. Use Appendix 1 of February 26, 2016.
Turbomeca S.A. Alert MSB No. A249 72 as amended, was published in the
Colleen M. D’Alessandro, Federal Register on November 4, 2015.2
0100, Version H, dated May 21, 2015 for the
schedule of inspections. Manager, Engine & Propeller Directorate, The Commission received one comment
(4) If, during any inspection required by Aircraft Certification Service. on the proposal.3 The Commission is
paragraphs (e)(2) or (e)(3) of this AD, any [FR Doc. 2016–06000 Filed 3–16–16; 8:45 am] approving the proposed rule change
crack, corrosion, or other damage is detected BILLING CODE 4910–13–P under section 3(e)(2) of SIPA.4
on the inducer, then before next flight,
replace the centrifugal compressor. II. Proposed Rule Change
(5) Accomplishment of a UI or ECI of the Pursuant to SIPA and SIPC Bylaws,
centrifugal compressor inducer, required by SECURITIES AND EXCHANGE broker-dealers that are SIPC members
paragraph (e)(2) of this AD, is acceptable in COMMISSION pay semi-annual assessments to SIPC at
lieu of a BSI required by paragraph (e)(3) of
this AD for that engine. the mid-point and at the end of their
17 CFR Part 300 fiscal year.5 The assessment payments
(6) Replacement of a centrifugal
compressor required by paragraph (e)(4) of are the main source of funding for the
[Release No. SIPA–175; File No. SIPC–2015–
this AD, does not constitute terminating 01] SIPC Fund. The amount of the
action for the repetitive inspections required assessment a broker-dealer must pay is
by paragraphs (e)(2) and (e)(3) of this AD. Securities Investor Protection based on the firm’s revenues from its
(f) Credit for Previous Actions Corporation securities business.6 Consequently, in
relation to the payment of the
You may take credit for the inspections AGENCY: Securities and Exchange assessments, a broker-dealer must file
and corrective actions required by paragraphs Commission.
(e)(2) and (e)(3) of this AD, if you performed with SIPC a Form SIPC–6 (General
the inspections and corrective actions before ACTION: Final rule. Assessment Payment Form) with the
the effective date of this AD, using mid-year assessment and a Form SIPC–
Turbomeca S.A. Alert MSB No. A249 72 SUMMARY: The Securities and Exchange 7 (General Assessment Reconciliation
0100, Version G, or an earlier version. Commission (‘‘Commission’’) is Form) with the year-end assessment.
approving a proposed rule change filed These forms show the broker-dealer’s
(g) Alternative Methods of Compliance
by the Securities Investor Protection calculation of the assessment amount
(AMOCs)
Corporation (‘‘SIPC’’). The rule change based on its revenues from its securities
The Manager, Engine Certification Office, adds SIPC Rule 600, entitled ‘‘Rules business.7
FAA, may approve AMOCs for this AD. Use
Relating to Supplemental Report of SIPC Broker-dealers that limit their
the procedures found in 14 CFR 39.19 to
make your request. You may email your Membership.’’ Because SIPC rules have business to certain specified activities or
request to: ANE-AD-AMOC@faa.gov. the force and effect as if promulgated by conduct their business outside of the
the Commission, those rules are United States are exempt from being
(h) Related Information published in Title 17 of the Code of members of SIPC.8 Consequently, these
For more information about this AD, Federal Regulations, where the rule broker-dealers do not pay a SIPC
contact Kenneth Steeves, Aerospace change will be reflected. assessment. However, they must file a
Engineer, Engine Certification Office, FAA,
DATES: Effective March 31, 2016.
Engine & Propeller Directorate, 1200 District 1 15 U.S.C. 78ccc(e)(2)(A).
Avenue, Burlington, MA 01803; phone: 781– FOR FURTHER INFORMATION CONTACT: 2 See Securities Investor Protection Corporation,
238–7765; fax: 781–238–7199; email: Michael A. Macchiaroli, Associate Release No. SIPA–173 (Oct. 28, 2015), 80 FR 68286
kenneth.steeves@faa.gov. Director, at (202) 551–5525; Thomas K. (Nov. 4, 2015).
(i) Material Incorporated by Reference McGowan, Associate Director, at (202) 3 See email from Paul W. Lameo to Michael A.
551–5521; Randall W. Roy, Deputy Macchiaroli dated December 22, 2015. The
(1) The Director of the Federal Register comment requested clarification regarding a
approved the incorporation by reference Associate Director, at (202) 551–5522; number of technical questions concerning the
(IBR) of the service information listed in this Timothy C. Fox, Branch Chief, at (202) process for filing reports with SIPC. SIPC intends
paragraph under 5 U.S.C. 552(a) and 1 CFR 551–5687; Rose Russo Wells, Senior to issue Frequently Asked Questions to respond to
Counsel, at (202) 551–5527; Office of those and other technical questions.
part 51. 4 Under SIPA, to be final, rules proposed by SIPC
asabaliauskas on DSK3SPTVN1PROD with RULES
(2) You must use this service information Financial Responsibility, Division of must be approved by the Commission. See 15
as applicable to do the actions required by Trading and Markets, Securities and U.S.C. 78ccc(e)(2).
this AD, unless the AD specifies otherwise. Exchange Commission, 100 F Street NE., 5 See 15 U.S.C. 78ddd(c); SIPC Bylaws, Article 6.
(i) Turbomeca S.A. Alert Mandatory Washington, DC 20549–7010. 6 See 15 U.S.C. 78ddd(c) and (d).
Service Bulletin (MSB) No. A249 72 0100, 7 Form SIPC–7 provides that the broker-dealer
Version H, dated May 21, 2015. SUPPLEMENTARY INFORMATION: The
may deduct from the end of fiscal year assessment
(ii) Reserved. Commission is approving a proposed the amount paid mid-year with the filing of the
(3) For Turbomeca S.A. service information rule change filed by SIPC, adding SIPC Form SIPC–6.
identified in this AD, contact Turbomeca Rule 600, 17 CFR 300.600. 8 See 15 U.S.C. 78ccc(a)(2)(A).
VerDate Sep<11>2014 15:58 Mar 16, 2016 Jkt 238001 PO 00000 Frm 00004 Fmt 4700 Sfmt 4700 E:\FR\FM\17MRR1.SGM 17MRR1](https://thefederalregister.org/doc/81_FR_14424/page/1.svg)
![14374 Federal Register / Vol. 81, No. 52 / Thursday, March 17, 2016 / Rules and Regulations
assessments are the main source of Applying Agreed-Upon Procedures’’) if (vi) If exclusion from membership is
funding for the SIPC Fund. The a rule of the Securities and Exchange claimed, compare the income or loss
Commission determined that because Commission (SEC) requires the broker reported in the audited financial
Forms SIPC–3, SIPC–6, and SIPC–7 are or dealer to file audited financial statements required by an SEC rule with
used solely by SIPC for purposes of statements annually. the Form SIPC–3.
levying its assessments, SIPC should (2) If the broker or dealer is a member By the Commission.
prescribe by rule the form and content of SIPC, the broker or dealer is not
Dated: March 14, 2016.
of the SIPC supplemental report. Rule required to file the supplemental report
Robert W. Errett,
600 prescribes the form and content of for any year in which it reports
the report, in accordance with $500,000 or less in total revenues in its Deputy Secretary.
paragraph (e)(4) of Rule 17a–5. Second, annual audited statement of income [FR Doc. 2016–06041 Filed 3–16–16; 8:45 am]
Rule 600 is modelled on existing filed with the SEC. BILLING CODE 8011–01–P
requirements in Rule 17a–5 prescribing (b) Requirements of the supplemental
the information that must be included report. The supplemental report must
in, and the format of, the SIPC cover the SIPC Annual General DEPARTMENT OF LABOR
supplemental report. Accordingly, the Assessment Reconciliation Form (Form
Commission finds that Rule 600 is in SIPC–7) or the Certification of Exclusion Occupational Safety and Health
the public interest and is consistent From Membership Form (Form SIPC–3) Administration
with the purposes of SIPA. for each year for which an SEC Rule
It is therefore ordered by the requires audited financial statements to 29 CFR Part 1985
commission, pursuant to section 3(e)(2) be filed. The supplemental report must [Docket Number: OSHA–2011–0540]
of SIPA, that the above-mentioned include the following:
(1) A copy of the form filed or a RIN 1218–AC58
proposed rule change is approved. In
accordance with section 3(e)(2) of SIPA, schedule of assessment payments
showing any overpayments applied and Procedures for Handling Retaliation
the approved rule change shall be given Complaints Under the Employee
the force and effect as if promulgated by overpayments carried forward,
including payment dates, amounts, and Protection Provision of the Consumer
the Commission. Financial Protection Act of 2010
name of SIPC collection agent to whom
IV. Statutory Authority mailed; or AGENCY: Occupational Safety and Health
Pursuant to SIPA, 15 U.S.C. 78aaa et (2) If exclusion from membership was Administration, Labor.
seq., and particularly, section 3(e)(15 claimed, a statement that the broker or ACTION: Final rule.
U.S.C. 78ccc(e), SIPC is adding section dealer qualified for exclusion from
300.600 of Title 17 of the Code of membership under the Securities SUMMARY: This document provides the
Federal Regulations in the manner set Investor Protection Act of 1970, as final text of regulations governing the
forth below. amended, and the date the Form SIPC– employee protection (whistleblower)
3 was filed with SIPC; and provisions of the Consumer Financial
List of Subjects in 17 CFR Part 300 (3) An independent public Protection Act of 2010, Section 1057 of
Brokers, Securities. accountant’s report. The independent the Dodd-Frank Wall Street Reform and
public accountant, who must be Consumer Protection Act of 2010
Text of the Amendments independent in accordance with the (CFPA). An interim final rule
In accordance with the foregoing, provisions of 17 CFR 210.2–01, must be establishing procedures for these
Title 17, Chapter II of the Code of engaged to perform the following provisions and requesting public
Federal Regulations is amended as agreed-upon procedures in accordance comment was published in the Federal
follows: with standards of the Public Company Register on April 3, 2014. Two
Accounting Oversight Board (PCAOB): comments were received. This rule
PART 300—RULES OF THE (i) Compare assessment payments responds to those comments and
SECURITIES INVESTOR PROTECTION made in accordance with the General establishes the final procedures and
CORPORATION Assessment Payment Form (Form SIPC– time frames for the handling of
6) and applied to the General retaliation complaints under CFPA,
■ 1. The authority citation for part 300 Assessment calculation on the Form including procedures and timeframes
continues to read as follows: SIPC–7 with respective cash for employee complaints to the
Authority: 15 U.S.C. 78ccc. disbursements record entries; Occupational Safety and Health
(ii) For all or any portion of a fiscal Administration (OSHA), investigations
■ 2. Add an undesignated center year, compare amounts reflected in the
heading and § 300.600 to read as by OSHA, appeals of OSHA
audited financial statements required by determinations to an administrative law
follows: an SEC rule with amounts reported in judge (ALJ) for a hearing de novo,
Rules Relating to Supplemental Report the Form SIPC–7; hearings by ALJs, review of ALJ
on SIPC Membership (iii) Compare adjustments reported in decisions by the Administrative Review
the Form SIPC–7 with supporting Board (ARB) (acting on behalf of the
§ 300.600 Rules relating to supplemental schedules and working papers
report on SIPC membership. Secretary of Labor) and judicial review
supporting the adjustments; of the Secretary of Labor’s final
asabaliauskas on DSK3SPTVN1PROD with RULES
(a)(1) Who must file the supplemental (iv) Verify the arithmetical accuracy decision.
report. Except as provided in paragraph of the calculations reflected in the Form
(a)(2) of this section, a broker or dealer SIPC–7 and in the schedules and DATES: This final rule is effective on
must file with SIPC, within 60 days after working papers supporting any March 17, 2016.
the end of its fiscal year, a supplemental adjustments; and FOR FURTHER INFORMATION CONTACT: Viet
report on the status of its membership (v) Compare the amount of any Ly, Program Analyst, Directorate of
in SIPC (commonly referred to as the overpayment applied with the Form Whistleblower Protection Programs,
‘‘Independent Accountants’ Report on SIPC–7 on which it was computed; or Occupational Safety and Health
VerDate Sep<11>2014 15:58 Mar 16, 2016 Jkt 238001 PO 00000 Frm 00006 Fmt 4700 Sfmt 4700 E:\FR\FM\17MRR1.SGM 17MRR1](https://thefederalregister.org/doc/81_FR_14424/page/3.svg)
Document Created: 2016-03-17 00:58:42
Document Modified: 2016-03-17 00:58:42
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Rules and Regulations | |
| Action | Final rule. | |
| Dates | Effective March 31, 2016. | |
| Contact | Michael A. Macchiaroli, Associate Director, at (202) 551-5525; Thomas K. McGowan, Associate Director, at (202) 551-5521; Randall W. Roy, Deputy Associate Director, at (202) 551-5522; Timothy C. Fox, Branch Chief, at (202) 551-5687; Rose Russo Wells, Senior Counsel, at (202) 551-5527; Office of Financial Responsibility, Division of Trading and Markets, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-7010. | |
| FR Citation | 81 FR 14372 | |
| CFR Associated | Brokers and Securities |
2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR