SEC Approves Final Rule on Supplemental Reporting Requirements for SIPC Members (Fed. Reg.)

The SEC approved a proposed rule change filed by the Securities Investor Protection Corporation ("SIPC") that will add SIPC Rule 600, which relates to the supplemental report of SIPC membership. The purpose of Rule 600 is to replace the requirements currently in Rule 17a-5 prescribing the information that must be included in, and the format of, the SIPC supplemental report. Rule 600 requires that the SIPC supplemental report include a report of an independent public accountant. Rule 600 also incorporates prior relief by providing that a SIPC member broker dealer is exempt from filing the supplemental report if the broker dealer reports $500,000 or less in total revenue in its annual audited statement of income. Finally, Rule 600 provides that a broker dealer must file the supplemental report within 60 days after the end of its fiscal year. The final rule will become effective on March 31, 2016.