SEC gives brokers with Fully Paid Lending programs six months to ensure compliance
No Action letter to SIFMA:
Your staff has brought to our attention that a number of broker-dealers are operating programs in which they borrow fully paid and excess margin securities from their customers (“FPL Programs”). As discussed below, the staff of the Division of Trading and Markets (“Division staff”) believes that some of these programs do not comply with the requirements of the broker-dealer customer protection rule (“Rule 15c3-3”).1 The staff also believes it would be appropriate to provide a limited amount of time for broker-dealers to come into compliance with Rule 15c3-3 which would allow them to adjust or wind down such FPL Programs in an orderly manner. Consequently, the Division staff will not recommend enforcement action to the Commission if a broker-dealer operating a FPL Program that does not comply with Rule 15c3-3 for the reasons discussed below comes into compliance with the rule as soon as practicable but no later than six months from the date of this letter: April 22, 2021.
June 12, 2020
July 3, 2019
November 6, 2018