Who needs an SEC Form X-17A-5 (Part III)?
An SEC Form X-17A-5 is a report on financial condition and operation, which must be filed by all brokers and dealers provisioned in Section 17 of the 1934 Securities Exchange Act and Rule 17a-5. This form has three parts. This blog post will be providing essential information about its final part — Part III to Form X-17A-5. The mentioned document is an Annual Audited Report. To be audited, an applicant must turn to a certified public accountant (CPA).
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 the annual reports, as is it serves a Facing Page identifying this reports.
Is the SEC Form X-17A-5 (Part III) accompanied by other forms?
The Part III of the Form X-17A-5 has no use if not supported by a number of editorial statements. However, there isn’t a strict provision to complete all the listed documents, there may be just some of them, depending on the particular situation:
- 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 not later than 60 calendar days after the date chosen to be the end of the firm's fiscal year. It usually falls on 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)?
The Part III of the Form X-17A-5e is required to be filled out in such an order:
- Period, which is being reported for;
Registrant identification (firm’s name and address);
Accountant identification (name and address);
Oath or Affirmation (dated and signed by the broker-dealer or its authorized representative);
Notary’s authorization;
Checklist of documents included to the report.
It is imperative that a broker-dealer makes a copy of the notarized Form X-17A-5 and retain it in its own records. The copy must be kept for at least six years, while during the first two in a place easy to access.
Where do I send the SEC Form X-17A-5 (Part III)?
The completed form should be submitted with the United States Securities and Exchange Commission (SEC) along with all the supporting documents.
