Series 28: Compliance And Exemption Reports

Compliance and Exemption Reports

Broker-dealers must also file an annual SEC report (again, within 60 days of the end of the fiscal year) verifying their compliance with or exemption from financial responsibility rules.

Compliance reports are filed by carrying broker-dealers, which maintain custody of their customers’ assets. These reports require broker-dealers to affirm that they have established and implemented internal controls that check for compliance with the SEC’s financial responsibility rules—including the net capital rule and the customer protection rule. The broker-dealer must state that its internal controls were effective duri