Who regulates broker-dealers in the UK?
The Functions of the Financial Conduct Authority (UK) (FCA) According to the FCA’s website, the authority regulates the conduct of 59,000 financial services firms and financial markets in the United Kingdom.
What activities require broker/dealer registration?
As such, subsidiaries and affiliates of banks that engage in broker-dealer activities are required to register as broker-dealers under the Act. Also, banks that act as municipal securities dealers or as government securities brokers or dealers continue to be required to register under the Act.
How are broker/dealers regulated?
In the United States, broker-dealers are regulated under the Securities Exchange Act of 1934 by the Securities and Exchange Commission (SEC), a unit of the U.S. government. Some regulatory authority is further delegated to the Financial Industry Regulatory Authority (FINRA), a self-regulatory organization.
What is broker/dealer compliance?
Rule 15c3-3 under the 1934 Act is designed to protect customer funds and securities held by broker-dealers. The rule requires a broker-dealer to have possession or control of all fully-paid or excess margin securities held for the account of customers.
What kind of regulation does a broker dealer have?
Broker-dealers are subject to regulatory oversight by the SEC and must also be members of one or more self-regulatory organizations. Broker-dealers may also be subject to regulation under state blue sky laws. Large broker-dealers may act as clearing brokers and also offer prime brokerage services to private funds, including hedge funds.
Who are the associated people of a broker dealer?
The Act defines an “associated person” of a broker-dealer as any partner, officer, director, branch manager, or employee of the broker-dealer, any person performing similar functions, or any person controlling, controlled by, or under common control with, the broker-dealer.
When do brokers need to register with the SEC?
Broker-Dealers Must Register Before Selling Unregistered Securities – Including Private Placements (or Regulation D offerings) Requirements Regarding Brokers and Dealers of Government and Municipal Securities, including Repurchase Agreements Special Rules That Apply to Banks and Other Financial Institutions
Can a broker-dealer extend credit to a customer?
Section 11(d)(1) of the Act generally prohibits a broker-dealer that participates in the distribution of a new issue of securities from extending credit to customers in connection with the new issue during the distribution period and for 30 days thereafter.