Alert

SEC Issues Order Extending Annual Reports Filing Deadline for Certain Broker-Dealers

The Securities and Exchange Commission (SEC) issued Release Number 34-91128, Order Extending the Annual Reports Filing Deadline for Certain Smaller Broker-Dealers, on February 12, 2021.

This order amends paragraph (d)(5) of Rule 17a-5, extending the deadline for certain smaller broker-dealers that file annual reports. The order is effective immediately.

Rule 17a-5 Filing Extension Details

The order extends the annual-report filing deadline by 30 calendar days for smaller broker-dealers that meet certain conditions. The SEC issued the order in response to a request from the Financial Industry Regulatory Authority (FINRA).

The extension will expand the timeframe between when entities must submit fiscal year-end Financial and Operational Combined Uniform Single (FOCUS) Reports and when they must file annual reports. This is intended to promote quality financial reporting by increasing the amount of time smaller broker-dealers have to prepare annual reports and identify and resolve issues.

Who Qualifies for the Filing Extension

To qualify for the 30-day extension, broker-dealers must meet all four of the following conditions:

  1. Rule 15c3-1 and total capital and allowable subordinated liabilities. The broker-dealer was in compliance with Rule 15c3-1 and had total capital and allowable subordinated liabilities of less than $50 million, as reported in box 3530 of Part II or Part IIA of its FOCUS Report as of its most recent fiscal year-end.
  2. Exemption reports. The broker-dealer is permitted to file an exemption report as part of its most recent fiscal year-end annual reports.
  3. Written notifications. The broker-dealer submits written notification to its designated examining authority of its intent to rely on this order on an ongoing basis for as long as it meets the conditions of the order.
  4. Electronic filing. The broker-dealer must file the annual reports electronically with the SEC using an appropriate process.

We’re Here to Help

For more information about how these changes could affect your business, contact your Moss Adams professional.