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SIPC, FINRA to Offer Simpler BD Filing Process

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The Securities Investor Protection Corp. and the Financial Industry Regulatory Authority have teamed up to ease reporting burdens and compliance costs for broker-dealers.

Starting Sept. 1, firms that currently file annual reports separately with SIPC and FINRA will file just once, using FINRA’s existing proprietary reporting portal.

The two organizations noted in a Tuesday release announcing the partnership that a simplified filing process “will also reduce inconsistent or incomplete filing of annual audited financial statements and supplementary reports.”

The portal will provide both agencies with the information, enabling the firms to meet the two agencies’ respective reporting requirements with a single filing.  

Stephen Harbeck, president and CEO of SIPC, said the corporation currently receives more than 3,500 such reports each year. “The agreement also complements similar work that FINRA has done with its client exchanges to reduce duplicative reporting by common member firms.”

Robert Cook, FINRA’s president and CEO, added that “streamlining a regulatory filing requirement in a manner that reduces burdens on firms while preserving important investor protections is consistent with the goals of FINRA360, our ongoing review of our regulatory programs and operations.”

SIPC protects investors if a member BD fails. Most U.S. brokerage firms are required to be members.

— Check out The Mysterious Case of the Unpaid Arbitration Awards on ThinkAdvisor.


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