SEC Form 17-H
Contents
Demystifying SEC Form 17-H: A Comprehensive Guide
Deciphering SEC Form 17-H: Unveiling its Significance
SEC Form 17-H is a crucial filing required by securities brokers under the Securities and Exchange Commission (SEC) regulations. This form, known as the Risk Assessment Report for Broker-Dealers, plays a vital role in assessing the risk profiles of broker-dealers and safeguarding the integrity of the securities markets.
Exploring SEC Form 17-H
- SEC Form 17-H mandates securities brokers to disclose detailed information about their business activities and risk profiles.
- The form encompasses six pages and necessitates disclosures related to financial statements, legal proceedings, and affiliated entities.
- The SEC introduced Rule 17-H and Form 17-H following the collapse of Drexel Burnham Lambert, highlighting the need for enhanced regulatory oversight in the securities industry.
Understanding the Purpose of SEC Form 17-H
SEC Form 17-H serves as a tool for the SEC to monitor systemic risks posed by broker-dealers. By scrutinizing factors such as asset composition, pending litigation, and organizational structures, the SEC aims to identify and mitigate risks that could disrupt market stability.
Tracing the History of SEC Form 17-H
The genesis of SEC Form 17-H can be traced back to the collapse of Drexel Burnham Lambert in 1990. The demise of Drexel underscored the potential risks associated with broker-dealers and prompted regulatory reforms aimed at enhancing transparency and risk management practices.