Customer Protection Rule 15C3-3

Rule15C3-3, or the “Customer Protection Rule” as it’s also known, dictates the minimum amount of securities and cash that broker-dealers must hold in secure accounts on behalf of their clients. The goal is to ensure that customers can always access a large portion of their funds, even if the firm itself becomes insolvent.

This online course provides an opportunity to learn how the three main purposes of the Rule 15C3-3 protect customer interests and how they affect the regulatory environment within firms.

We’ll begin with a high-level overview of the Regulatory Environment, and then explore the brief history of the Customer Protection Rule and its origin. We’ll then move to operations, which is a vital conversation since Rule 15C3-3 is an operations based rule. We’ll cover Settlement, Margin, Stock Record, and Financing Tools and then finally dive deep into the actual 15C3-3 rule.

This online course comprises of the following 3 modules which are packed with interesting video lectures and exercises:

• Module 01: Introduction

• Module 02: Operations

• Module 03: Rule 15C3-3 Reserve Formula

• Background and reasoning for the Rule’s existence.

• The difference between customers and non-customers as applied by the Rule.

• How the stock record allocation works and why certain balance makes it into the reserve formula.

• How possession or control requirements are calculated and the actions necessary when securities are in deficit.

• How to review actual FOCUS Reserve Formula allocation