SEC extends filing deadline for certain broker-dealers

By Kristen Hughes, Baker Tilly


On Feb. 12, 2021, the U.S. Securities and Exchange Commission (SEC) released an order extending the reporting deadline for certain smaller broker-dealers. Typically, broker-dealers registered with the SEC are required to file a financial report and a compliance report, or an exemption report alongside reports from a registered independent public accountant (collectively, the “reports”) within 60 calendar days after the end of the fiscal year of the broker-dealer. Pursuant to (m)(3) of Exchange Act Rule 17a-5, the Financial Industry Regulatory Authority, Inc. (FINRA) has requested that the SEC extend the deadline by 30 calendar days for certain smaller broker-dealers to file reports.

The extension is only available to broker-dealers that meet certain conditions. The broker-dealer must:

  1. Be in compliance with Exchange Act Rule 15c3-1 as of the date of its most recent year-end
  2. As of year-end, have total capital and allowable subordinated liabilities of less than $50 million (as reported in box 3530 of Part II or IIA of its FOCUS)
  3. Be eligible to file an exemption report, rather than a compliance report
  4. Submit written communication to FINRA of its intent to utilize the 30-day extension for filing the reports on an ongoing basis, subject to the above conditions being met
  5. Submit the reports electronically to the SEC

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