The Securities and Exchange Commission (SEC) has adopted amendments to Rule 15c3-3, the customer protection rule, and Rule 15c3-1, the broker-dealer net capital rule, aimed at bolstering financial safeguards for customers and PAB (proprietary account of broker-dealers) account holders. The amendments require broker-dealers with average total credits exceeding $500 million to perform daily computations of the net cash owed to customers and PAB account holders, replacing the previous weekly requirement. This change enhances the ability to dynamically align cash deposits with obligations, reducing the risk of delayed fund returns in cases of financial failure.
The new rules also permit broker-dealers to conduct daily computations to reduce the "buffer" for customer reserve computations from 3% to 2%, reflecting improved customer protection measures. The changes will go into action 60 days after they are published in the Federal Register. By December 31, 2025, broker-dealers with more than $500 million in assets will have to do calculations every day. Gary Gensler, Chair of the SEC, stressed how important these changes are for building trust in the market and protecting customers.
