General Rules and Regulations, Securities Exchange Act of 1934

[Federal Register Volume 64, Number 141 (Friday, July 23, 1999)]
[Rules and Regulations]
[Page 39918]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-55522]


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SECURITIES AND EXCHANGE COMMISSION

17 CFR Part 240


General Rules and Regulations, Securities Exchange Act of 1934

CFR Correction

    In Title 17 of the Code of Federal Regulations, parts 240 to end, 
revised as of April 1, 1999, page 384, Sec. 240.17a-5 is corrected by 
adding paragraphs (g)(2) and (3) after paragraph (g)(1)(iv) to read as 
follows:


Sec. 240.17a-5  Reports to be made by certain brokers and dealers.

 * * * * *
    (g) * * *
    (2) If the broker or dealer is exempt from Sec. 240.15c3-3, the 
independent public accountant shall ascertain that the conditions of 
the exemption were being complied with as of the examination date and 
that no facts came to his attention to indicate that the exemption had 
not been complied with during the period since his last examination.
    (3) A material inadequacy in the accounting system, internal 
accounting controls, procedures for safeguarding securities, and 
practices and procedures referred to in paragraph (g)(1) of this 
section which is expected to be reported under these audit objectives 
includes any condition which has contributed substantially to or, if 
appropriate corrective action is not taken, could reasonably be 
expected to (i) inhibit a broker or dealer from promptly completing 
securities transactions or promptly discharging his responsibilities to 
customers, other broker-dealers or creditors; (ii) result in material 
financial loss; (iii) result in material misstatements of the broker's 
or dealer's financial statements; or (iv) result in violations of the 
Commission's recordkeeping or financial responsibility rules to an 
extent that could reasonably be expected to result in the conditions 
described in paragraphs (g)(3) (i), (ii), or (iii) of this section.
 * * * * *

[FR Doc. 99-55522 Filed 7-22-99; 8:45 am]
BILLING CODE 1505-01-D