Course Code: 701

Duration: 1 day

Level: Basic

Fee: $795.00

CPE Credits: 7

Prerequisite: No Prerequisite Required.

Through lecture and case studies, the participants will examine in detail the Uniform Net Capital Rule (15c3-1), and the Customer Protection Rule (15c3-3). The course will explain and illustrate the accounting procedures dictated by the rules.

15c3-1 UNIFORM NET CAPITAL RULE

Securities and Exchange Act (The 34 Act)

Capital Requirements

Accounting and Recordkeeping Requirements

•  Stock Record
•  General Ledger
•  Understanding Transaction Flow

Definitions

•  Aggregate Indebtedness
•  Non-Allowable Assets
•  Unsecured/Partially Secured
•  Haircut, Trade Date/Settlement Date

Computation

•  Classification of Assets and Liabilities
•  Customer?s Accounts
•  Unsecured Debits
•  Receivables from Other Broker/Dealers
•  Fail to Receive/Deliver
•  Aged Fails

Role of Securities Processing Departments

15c3-3 CUSTOMER PROTECTION RULE

Reason for the Rule

Legislation Passed to Mandate the Calculation

Determining Which Customers Are Subject to Calculation

Understanding the Items in the Major Headings of the Formula

•  Customer Credits
•  Bank Loans
•  Miscellaneous Credits
•  Customer Debits
•  Securities Loaned
•  Fail To Receive
•  Fail To Deliver
•  Securities Borrowed

Allocations: Specific Identification or Automated Allocation Method

When the Deposit Has to Be Made

What Constitutes a Good Deposit

Frequency of Calculations

Possession & Control Portion of the Customer Protection Rule

Role of the Securities Processing Departments

Please bring a calculator.

After completing this seminar, participants will be familiar with the following:

• Securities Exchange Act (34 Act) 
• Capital Requirements
• Accounting and Recordkeeping Requirements
• Definitions
• Computations and the role of securities processing departments relating to the 15c3-1 Uniform Net Capital and 15c3-3 Customer Protection Rules