SEC Proposes Amendments to its Financial Responsibility Rules for Broker-Dealers

On March 21, 2007, the Washington office authored an Alert Memorandum entitled, “SEC Proposes Amendments to its Financial Responsibility Rules for Broker-Dealers.” The memorandum discusses the Securities and Exchange Commission proposed amendments to its financial responsibility rules for broker-dealers, which address a wide range of issues arising in connection with the net capital rule (Rule 15c3-1), customer protection rule (Rule 15c3-3), books and records rules (Rules 17a-3 and 17a-4), and notification rule (Rule 17a-11). Comments on the proposed amendments are due on or before May 18, 2007. The alert memo discusses key points of the proposed amendments.