• FAQs Regarding Customer Asset Protection in a Broker-Dealer Bankruptcy
  • April 9, 2008
  • Law Firm: Proskauer Rose LLP - New York Office
  • Broker-dealers are regulated by the Securities and Exchange Commission (SEC). The primary mechanism the SEC uses to assess a brokerage firm's financial integrity is the net capital rule (17 CFR Section 15c3-1), which requires broker-dealers to maintain enough liquid assets, net of liabilities, to satisfy promptly the claims of customers in the event they must liquidate.