SEC Net Capital Rule 15c3-1
May 16, 2012
Registration Fee: US$895.00 Register Location Instructor
Many classes sell out; we suggest registering at least one week in advance to ensure your seat.
Beginner/Intermediate Level, 7 CPE Credits
Instructor: Charles Rey
Hours: 9:00 am - 5:00 pm; Registration/Breakfast begins at 8:30 am
Location: New York City, Bayard's, One Hanover Square
This one-day class examines the drivers for and ongoing need for a net capital requirement. We will review the formula for the Standard and Alternative methods of calculating requirements. For those participants unfamiliar with securities processing activities we will review critical operational processes to establish the flow of data required for the calculation. Many topics will be addressed including: Allowable and non-allowable assets, haircuts, subordinated loans.
Participants will apply the concepts during the class via planned activities such as recording transactions, performing the net calculation with using the Standard and Alternative methods.
Course Outline
Overview: Historical Relevance and Drivers
- Crash of ‘29
- Paper work crunch – 1968
- Securities Investor Protection Corporation
- Customer Protection Rule
Examination of Relevant Sections of Net Capital Rule
- Aggregate Indebtedness Standard
- Alternative/Standard
- Minimum Requirements
- Aggregated Indebtedness
- Haircuts
Analysis of Relevant Transactions
- Fails
- Short sales
- Securities Lent/Borrowed
- Options
Workshop: Recording Relevant Transactions
Self Regulatory Organizations (SRO)
- Profile and role of a SRO
- Evolution
- SEC Act of ’34
Calculation of Required Net Capital
- Books & Records
- Operational Deductions
- Adjustments to Equity
- Exclusions from aggregate indebtedness
Net Capital and the Focus Report
- Background
- Internal Control Objectives
- Knowledge of the Requirements
- Review & Validation
Maintaining Firm Compliance with Rule 15c3-1
- Internal Audit
- External Audit
Workshop: Net Capital Calculation