Arranging Your Annual Audited Report with SEC form x 17a 5 (Part III)
The SEC Form X 17A 5 has three parts. This blog post will provide essential information about the final part – Part III to Form X-17A-5, the Annual Audited Report.
Who needs an SEC Form X 17A 5 (Part III)?
SEC Form X 17A 5 is a report on financial conditions and operations, which must be filed by all brokers and dealers, as provisioned in Section 17 of the 1934 Securities Exchange Act and Rule 17a-5.
What is the SEC Form X 17A 5 (Part III) for?
The Form X-17A-5 must be filled out and attached to the front of each filed copy of an annual report.
Is the SEC Form X 17A 5 (Part iii) accompanied by other forms?
Part III of the Form X-17A-5 has no use if not supported by audit statements. Depending on the particular situation: they may include:
• Statement of Financial Condition and Notes to the Statement of Financial Condition
• Statement of Income (Loss)
• Statement of Cash Flows
• Statement of Changes in Stockholders’ Equity or Partners’ or Sole Proprietor’s Capital
• Statement of Changes in Liabilities Subordinated to Claims of Creditors
• Computation of Net Capital
• Computation for Determination of Reserve Requirements Pursuant to Rule 15c3-3
• Information Relating to the Possession or Control Requirements Under Rule 15c3-3
• A Reconciliation including appropriate explanation of the Computation of Net Capital Under Rule 15c3-1 and the Computation for Determination of the Reserve Requirements Under Exhibit A of Rule 15c3-3
• A Reconciliation between the audited and unaudited Statements of Financial Condition with respect to methods of consolidation
• An Oath or Affirmation
• A copy of the SIPC Supplemental Report
• A report describing any material inadequacies found to exist or found to have existed since the date of the previous audit
• Independent auditor’s report on internal control.
When is the SEC Form X 17A 5 (Part III) due?
The completed Annual Audited Report must be submitted no later than 60 calendar days after the date chosen as the end of the firm’s fiscal year. It usually falls at the beginning of March, if your company adopts the “calendar year” rule.
How do I fill out the SEC Form X-17A-5 (Part III)?
Part III of the Form X-17A-5e must be filled out in the following order:
• Registrant identification (firm’s name and address)
• Accountant identification (name and address)
• Oath or Affirmation (dated and signed by the broker-dealer or their authorized representative)
• Notary’s authorization
• Checklist of documents included in the report
It is imperative that a broker-dealer makes a copy of the notarized Form X-17A-5 and retains it for their records. The copy must be kept for at least six years, in an easily accessible place.
Where do I send the SEC Form X 17A 5 (Part III)?
The completed Annual Audited Report should be submitted with the United States Securities and Exchange Commission (SEC) along with all supporting documentation.