Can I get a refund of overpaid assessments?

How do I become a SIPC member?

How do I refile an assessment form due to an error in calculation?

How do I terminate my SIPC membership?

I have no revenue during the reporting period, should I put zeros in the revenue and assessment section and file the form?

Is there a review process if a SIPC member has questions about or wishes to challenge an assessable item?

My firm has no public customers, why do I have to be a member?

What assessment forms need to be filed and what are their due dates?

What is the Form SIPC-7B

Questions about Annual Reports (filed before 9/1/2017)

Do I have to file a copy of my Annual Reports with SIPC?

How should I file the Annual Reports with SIPC?

Questions about Annual Reports (filed on or after 9/1/2017)

Do I have to file a copy of my Annual Reports with SIPC?

How should I file the Annual Reports with SIPC?

When I file my Annual Report with FINRA what do I need to do to file it with SIPC?

If a DEA requires that I supplement or amend my filing what do I need to provide to SIPC?

I am exempt from the Annual Report filing requirement with my DEA. Do I need to do anything with SIPC?

I contacted SIPC last year to let SIPC know I was exempt from the Annual Report filing requirement. Do I need to do anything with SIPC this year?

I received a filing extension from my DEA. Do I need to do anything with SIPC?

I filed the Annual Report with my DEA though the FINRA Firm Gateway before September 1, 2017 but did not file the Annual Report with SIPC by September 1. What do I do?

My Annual Report filing with my DEA (and SIPC) was due prior to September 1, 2017 but I did not file through the FINRA Firm Gateway by that date. What do I need to do to meet my SIPC Annual Report filing requirement?

Can I use the FINRA Firm Gateway to file the Agreed-Upon Procedures (AUP) Report with SIPC?

Can I use the FINRA Firm Gateway to file my SIPC 6, 7 or 7B?

Questions About the Agreed-Upon Procedures (AUP) Report Mandated by the Series 600 Rules

Do I need to file the "Independent Accountant's Report on Applying Agreed Upon Procedures Related to an Entity's SIPC Assessment Reconciliation," or "Claim of Exclusion from Membership" (AUP Report) in accordance with SEC Rule 17a-5(e)(4)?

How should I file the Agreed-Upon Procedures (AUP) Report?

Once the SIPC Series 600 Rules are effective, does the AUP Report have to be filed with the SEC?

When must the AUP Report be filed with SIPC?

When must an AUP Report be issued for members that file a Form SIPC-7B?

When must an AUP Report be reissued?

The procedure specified under (3)(i) of the rule requires the accountant to perform the following: "Compare assessment payments made in accordance with the General Assessment Payment Form (Form SIPC-6) and applied to the General Assessment calculation on the Form SIPC-7 with respective cash disbursements record entries." Does this procedure also include comparing any amount due in Form SIPC - 7 to supporting check/wire instructions?

The procedure specified under (3)(ii) of the rule requires the accountant to perform the following: "For all or any portion of a fiscal year, compare amounts reflected in the audited financial statements required by an SEC rule with amounts reported in the Form SIPC - 7." In this procedure which "amounts" reflected in the audited financial statements should be compared with the Form SIPC-7?

The procedure specified under (3)(iii) of the rule requires the accountant to perform the following: "Compare adjustments reported in the Form SIPC - 7 with supporting schedules and working papers supporting the adjustments." What "adjustments" are referenced in this procedure?

The procedure specified under (3)(vi) of the rule requires the accountant to perform the following: "If exclusion from membership is claimed, compare the income or loss reported in the audited financial statements required by an SEC rule with the Form SIPC-3." What is required under this procedure?


Can I get a refund of overpaid assessments?

The Securities Investor Protection Act provides that overpayments shall be recoverable only against future assessments due, except as otherwise provided by law. SIPC Bylaw Article 6 permits refunds of amounts in excess of $150 to terminated members who have satisfied all filing requirements.

How do I become a SIPC member?

All registered brokers or dealers, by law, automatically become SIPC members, except for the following, who may be excluded from SIPC membership:

(i) persons whose principal business, in the determination of SIPC, taking into account business of affiliated entities, is conducted outside the United States and its territories and possessions;

(ii) persons whose business as a broker or dealer consists exclusively of (I) the distribution of shares of registered open end investment companies or unit investment trusts, (II) the sale of variable annuities, (III) the business of insurance, or (IV) the business of rendering investment advisory services to one or more registered investment companies or insurance company separate accounts; and

(iii) persons who are registered as a broker or dealer pursuant to 15 U.S.C. section 78o(b)(11)(A) - broker/dealer registration with respect to transactions in security futures products. See SIPA section 78fff(a)(2)(A) and SIPC-3.

How do I refile an assessment form due to an error in calculation?

Please make a copy of the form that was filed, label it “AMENDED,” and place a line through any incorrect number and write the correct number next to it. Mail the amended form to SIPC’s street address: 1667 K St. N.W., Suite 1000, Washington, DC 20006.

How do I terminate my SIPC membership?

To terminate the broker-dealer registration and SIPC membership, a completed broker-dealer withdrawal form (Form BDW) must be filed with the Central Registration Depository (CRD). The “effective withdrawal” usually is 60 days after the CRD receives and accepts the filing, and on that date SIPC membership would terminate. Note that SIPC may still initiate a liquidation proceeding up to 180 days after the effective date of the BDW.

I have no revenue during the reporting period, should I put zeros in the revenue and assessment section and file the form?

Yes.

Is there a review process if a SIPC member has questions about or wishes to challenge an assessable item?

Yes. Address all questions or concerns to the Membership Department, and provide documentation regarding any challenged assessable item. We will advise you of the outcome of our review.

My firm has no public customers, why do I have to be a member?

When Congress passed the Securities Investor Protection Act, it made all SIPC members subject to its provisions, including the obligation to pay assessments into the SIPC Fund. The objective was to instill confidence in the investing public and to place the financial support of the SIPC program on all firms that made their livelihood in the securities business, regardless of whether they had public customers or not. This includes SIPC member firms generating revenue from non-customer activities such as investment banking, raising money for private equity or hedge funds, financial advisory services, equity research, or other activities related directly or indirectly to the securities business.

What assessment forms need to be filed and what are their due dates?

Form SIPC-6, filed for the first six months of each member’s fiscal year, is due 30 days after the period which it covers plus a 15 day grace period.

Form SIPC-7 (35-REV 6/17), filed at the end of each member’s fiscal year, less the assessment paid with the Form SIPC-6, is due 60 days after the fiscal year-end (FYE) plus a 15 day grace period. (Assessment Rate is 0.0015).

Form SIPC-7B, filed in place of SIPC-7 when the assessment rate changes and the member's fiscal year overlaps periods with two different assessment rates.

Any deduction on line 2c(8), on page 2 of the forms, in excess of $100,000 must be accompanied by documentation.

Working copies of assessment forms can be used for filing.

What is the Form SIPC-7B

Form SIPC-7B is filed in place of the Form SIPC-7 when the assessment rate changes and the member’s fiscal year overlaps periods with two different assessment rates. Effective January 1, 2017, the assessment rate changed from 0.25% to 0.15% of net operating revenue. However, not until June 2017 was it decided that this change would be effective for all members on January 1, 2017, and not at the beginning of the member’s fiscal year. Members with fiscal years ending before December 31, 2017, should use the SIPC Form-7B.

The Form SIPC-7B is used to calculate the assessment due by applying the appropriate rate for the portions of the member’s fiscal year in calendar year 2016 and 2017 – 0.25% of net operating revenue and 0.15% of net operating revenue, respectively. Members with fiscal years ending in June through November 2017, should file a SIPC-7B at the conclusion of their fiscal year. This filing is due 60 days after the fiscal year end plus a 15-day grace period.

Members with fiscal years ending in January through May 2017, that have already filed a Form SIPC-7 may, but are not required to, amend that filing by submitting the Form SIPC-7B to take advantage of the lower 0.15% assessment rate for the portion of the fiscal year in calendar year 2017. Any resulting overpayments will be applied toward future SIPC assessments. The Form SIPC-7B for these members is due as soon as practicable.

Questions about Annual Reports (filed before 9/1/2017)

Do I have to file a copy of my Annual Reports with SIPC?

All members of SIPC that are required to file Annual Reports with the SEC and their DEA pursuant to SEC Rule 17a-5(d)(1), 17 C.F.R. § 240.17a-5(d)(1), are also required to file their Annual Reports with SIPC. Annual Reports are due to SIPC when they are due to the Designated Examining Authority (i.e., FINRA) and the SEC according to SEC Rule 17a-5(d)(5) (no more than sixty calendar days after the end of the broker-dealer’s fiscal year).

How should I file the Annual Reports with SIPC?

Through August 31, 2017, Annual Reports are only accepted electronically and must be e-mailed to SIPCAuditReports@sipc.org. The subject line of the email must include the SEC 8- number, the name of the member, and the fiscal year end for the Annual Reports.

Questions about Annual Reports (filed on or after 9/1/2017)

Do I have to file a copy of my Annual Reports with SIPC?

All members of SIPC that are required to file Annual Reports with the SEC and their DEA pursuant to SEC Rule 17a-5(d)(1), 17 C.F.R. § 240.17a-5(d)(1), are also required to file their Annual Reports with SIPC. Annual Reports are due to SIPC when they are due to the Designated Examining Authority (i.e., FINRA) and the SEC according to SEC Rule 17a-5(d)(5) (no more than sixty calendar days after the end of the broker-dealer’s fiscal year).

How should I file the Annual Reports with SIPC?
  1. Members that file Annual Reports with their DEAs through the FINRA Firm Gateway: Through an arrangement with FINRA, all members that file Annual Reports with their DEA through the FINRA Firm Gateway on and after September 1, 2017 will use the FINRA Firm Gateway to also file their Annual Reports with SIPC.
  2. Members that do not file Annual Reports with their DEAs through the FINRA Firm Gateway:
    SIPC members that do not file through the FINRA Firm Gateway will be provided with instructions.
When I file my Annual Report with FINRA what do I need to do to file it with SIPC?

Nothing additional. When an Annual Report is filed by a member through the FINRA Firm Gateway on or after 9/1/17, this will also constitute filing with SIPC. When filing through the FINRA Firm Gateway the FINRA site will indicate:

By submitting this report, [the firm] acknowledges that the filing of its Annual Report with FINRA (initial and amendments) also constitutes filing of the Annual Report with SIPC pursuant to SEC Rule 17a-5 if the firm is also a SIPC member.

If a DEA requires that I supplement or amend my filing what do I need to provide to SIPC?

Nothing additional. A supplemented or amended Annual Report requested by the DEA and filed through the FINRA Firm Gateway will be provided to SIPC.

I am exempt from the Annual Report filing requirement with my DEA. Do I need to do anything with SIPC?

Yes. Please email SIPC at annualreportsinquiries@sipc.org no later than sixty calendar days after the end of your fiscal year and advise that you are exempt from the Annual Report filing requirement. Please include a copy of any correspondence from your DEA supporting your exemption. Please notify SIPC each year that you are exempt from the Annual Report filing requirement.

I contacted SIPC last year to let SIPC know I was exempt from the Annual Report filing requirement. Do I need to do anything with SIPC this year?

Yes. Please notify SIPC at annualreportsinquiries@sipc.org each year no later than sixty calendar days after the end of your fiscal year that you are exempt from the Annual Report filing requirement.

I received a filing extension from my DEA. Do I need to do anything with SIPC?

No. If you received a filing extension from your DEA, that extension also applies to your filing deadline with SIPC. Nothing additional needs to be done.

I filed the Annual Report with my DEA though the FINRA Firm Gateway before September 1, 2017 but did not file the Annual Report with SIPC by September 1. What do I do?

If you filed the report with your DEA though the FINRA Firm Gateway but did not file with SIPC, please contact SIPC at annualreportsinquiries@sipc.org or 202 371-8300. SIPC will instruct you on how to file your Annual Report with SIPC.

My Annual Report filing with my DEA (and SIPC) was due prior to September 1, 2017 but I did not file through the FINRA Firm Gateway by that date. What do I need to do to meet my SIPC Annual Report filing requirement?

When you file your Annual Report through the FINRA Firm Gateway on or after September 1, 2017 you will meet your filing requirement with SIPC.

Can I use the FINRA Firm Gateway to file the Agreed-Upon Procedures (AUP) Report with SIPC?

No. The AUP Report must be filed directly with SIPC either by mail (1667 K St. N.W., Suite 1000 Washington, DC 20006-1620) or by email at form@sipc.org even if this report was included with the filing made through the FINRA Firm Gateway.

Can I use the FINRA Firm Gateway to file my SIPC 6, 7 or 7B?

No. These forms must be filed directly with SIPC either by mail (P.O. Box 92185 Washington, DC 20090-2185) or by email at form@sipc.org.

Questions About the Agreed-Upon Procedures (AUP) Report Mandated by the Series 600 Rules

Do I need to file the "Independent Accountant's Report on Applying Agreed Upon Procedures Related to an Entity's SIPC Assessment Reconciliation," or "Claim of Exclusion from Membership" (AUP Report) in accordance with SEC Rule 17a-5(e)(4)?

SIPC members are required to file this report if total revenues are more than $500,000. SIPC-3 filers must file this report regardless of the amount of their total revenues. Examples of the required filings for SIPC members and SIPC-3 filers are available at Agreed-Upon Procedures (AUP) Reports.

How should I file the Agreed-Upon Procedures (AUP) Report?

Please send the AUP Report separately from the Annual Audit Report.

There are two options to send the AUP Report to SIPC:

1) File the AUP Report with the copy of the SIPC-7 or SIPC-3 by sending an e-mail to form@sipc.org. In the subject line, list the SEC 8-# and the name of the firm for whom the report is being filed, or

2) Mail the AUP Report together with a copy of the SIPC-7 or SIPC-3 to SIPC’s street address:
1667 K St. N.W., Suite 1000
Washington, DC 20006-1620

Once the SIPC Series 600 Rules are effective, does the AUP Report have to be filed with the SEC?

No. The AUP Report must be filed with SIPC. Firms should no longer send it to the SEC.

When must the AUP Report be filed with SIPC?

The AUP Report must be filed within 60 days after the end of a broker-dealer’s fiscal year.

When must an AUP Report be issued for members that file a Form SIPC-7B?

For Fiscal Years ending January – May 2017

Members with fiscal years ending January through May and subject to filing of the “Independent Public Accountant’s Report on Applying Agreed-Upon Procedures” (AUP) that file a Form SIPC-7B must have their public accountant perform agreed upon procedures on the Form SIPC-7B calculations in conjunction with their 2018 audit engagement. A new template for the AUP report is available at Agreed-Upon Procedures (AUP) Reports.

For Fiscal Years ending June – November 2017

Members with fiscal years ending June through November and subject to filing of the “Independent Public Accountant’s Report on Applying Agreed-Upon Procedures” (AUP) must have their public accountant perform agreed upon procedures on the Form SIPC-7B calculations in conjunction with their 2017 audit engagement. A template for the AUP report is available at Agreed-Upon Procedures (AUP) Reports.

When must an AUP Report be reissued?

In general, anytime a Form SIPC-7 is amended by a member subject to the AUP Report, another AUP Report should be reissued covering that amended filing.

In 2017, members with fiscal years ending January through May and subject to filing of the “Independent Public Accountant’s Report on Applying Agreed-Upon Procedures” (AUP) that file a Form SIPC-7B do not need to file a resissued AUP Report. Instead, they must have their public accountant perform agreed upon procedures on the Form SIPC-7B calculations in conjunction with their 2018 audit engagement. A new template for the AUP Report will be made available on SIPC’s website.

The procedure specified under (3)(i) of the rule requires the accountant to perform the following: "Compare assessment payments made in accordance with the General Assessment Payment Form (Form SIPC-6) and applied to the General Assessment calculation on the Form SIPC-7 with respective cash disbursements record entries." Does this procedure also include comparing any amount due in Form SIPC - 7 to supporting check/wire instructions?

Yes. The independent public accountant should compare any amount due in Form SIPC-7 to supporting check/wire instructions. The results of each procedure should include details relating to the source documents such as payment date and name and title or department who provided the information.

The procedure specified under (3)(ii) of the rule requires the accountant to perform the following: "For all or any portion of a fiscal year, compare amounts reflected in the audited financial statements required by an SEC rule with amounts reported in the Form SIPC - 7." In this procedure which "amounts" reflected in the audited financial statements should be compared with the Form SIPC-7?

Amounts from the audited financial statements that correspond with the itemized amounts reported in the Form SIPC-7 (for example, "Total Revenues") should be compared.

The procedure specified under (3)(iii) of the rule requires the accountant to perform the following: "Compare adjustments reported in the Form SIPC - 7 with supporting schedules and working papers supporting the adjustments." What "adjustments" are referenced in this procedure?

"Adjustments" refers to any additions and deductions in the line items reported in the Form SIPC-7.

The procedure specified under (3)(vi) of the rule requires the accountant to perform the following: "If exclusion from membership is claimed, compare the income or loss reported in the audited financial statements required by an SEC rule with the Form SIPC-3." What is required under this procedure?

The income reported in the financial statements should be compared to the "Schedule of Form SIPC-3 Revenues," provided by the broker dealer for their FYE attached with the Form SIPC-3 (filed for the broker-dealers' FYE) to ascertain that the Form SIPC-3 is consistent with the income reported. If exclusion from SIPC membership is claimed, the following is procedures are required:

  • The accountant should thus compare the total amount included in the "Schedule of Form SIPC-3 Revenues," provided by the broker dealer for their FYE, to the total revenues reported on the audited financial statements for their FYE and note any differences. This schedule should accompany the (e)(4) report.
  • The accountant should also compare each revenue classification reported in the Schedule of Form SIPC-3 Revenues prepared by the broker dealer for their FYE to supporting schedules and working papers noting any differences. The results of the procedure should include a description of the supporting schedules, working papers and/or source documentation prepared by the broker dealer.
  • The accountant should also recalculate the arithmetical accuracy of the Total amount reflected in the Schedule of Form SIPC-3 Revenues prepared broker dealer for their FYE and in the related schedules and working papers, noting any differences. The results of the procedure should include a description of the supporting schedules, working papers, and source documentation prepared by the broker dealer.