Securities Investor Protection Corporation Reduces Rate Effective January 1, 2017

As of August 30, 2016, the Securities and Exchange Commission approved an amendment to the Assessments Bylaw of the Securities Investor Protection Corporation, which will reduce the assessment rate from 0.25% to 0.15% effective for fiscal years beginning January 1, 2017, or thereafter.  The rate reduction comes as a result of SIPC Fund reaching a cumulative balance of $2.5 billion with the expectation that it will remain above $2.5 billion for at least the next six months.

What this means for most broker dealers is that the implementation of the reduced rate will take effect on the upcoming SIPC 6 filing, based upon net operating revenue for the six months ended June 30, 2017.  The SIPC 6 filing is due on July 31, 2017, immediately after the second quarter Focus Report submission deadline.

We are encouraging firms to be mindful of the update and to take advantage of the cost savings resulting from the aforementioned amendment.

Please feel free to contact us at (212) 668-8700 or at if you have any questions.