SEC Issues FAQs on Broker-Dealers’ Financial Responsibility During COVID-19 Pandemic

The SEC’s Division of Trading and Markets has issued frequently asked questions (FAQs) about “certain provisions of the broker-dealer financial responsibility rules during the COVID-19 pandemic.” Specifically, the FAQs address the following topics:

• Whether “a broker-dealer participating in the Federal Reserve Money Market Mutual Fund Liquidity Facility (MMLF) [has] to take capital charges for securities purchased from a money market mutual fund.”
• Prompt transmission of customer checks under Rule 15c3-3(k)(2).
• Quarterly securities count of physical certificates.