United States

New rules relating to supplemental report of SIPC membership


The Securities Investor Protection Corporation (SIPC) recently adopted and the SEC has approved the SIPC Series 600 Rules, titled Rules Relating to Supplemental Report on SIPC Membership, effective March 31, 2016. The new rules prescribe the form and content of the SIPC supplemental report (commonly referred to as the "Independent Accountant’s Report on Applying Agreed-Upon Procedures"). The requirements of the Series 600 Rules for the SIPC Annual General Assessment Reconciliation Form (Form SIPC-7) are modeled on the previous requirements of Rule 17a-5(e)(4) under the Securities and Exchange Act of 1934 and are virtually the same as to form and content. The key difference is that, going forward, the mandated supplemental report must be filed with the SIPC and no longer with the SEC. Therefore, going forward, brokers and dealers that are required to file the supplemental report should file it only with the SIPC.

Also, under the new rules, brokers and dealers that previously were exempt from filing Form SIPC-7 are now required to file a Certification of Exclusion from Membership Form (Form SIPC-3) for each year for which an SEC Rule requires audited financial statements to be filed if exclusion from membership is claimed. Brokers and dealers that now are required to file Form SIPC-3 are encouraged to contact their auditors to discuss the related requirements.   

The following additional information is available on the SIPC’s website: