SEC Approves Amendment to Rule G-16, on Periodic Compliance Examination

On October 15, 1999 the Securities and Exchange Commission approved an amendment to rule G-16, on periodic compliance examination.¹The amendment alters rule G-16’s requirement that compliance examinations be conducted once every 24 months to once every two years. The rule change is intended to facilitate coordination of on-site examinations to eliminate unnecessary regulatory duplication without negatively affecting investor protection. The amendment became effective upon approval.

October 20, 1999

TEXT OF AMENDMENT²

At least once each twenty-four monthstwo calendar years, each broker, dealer and municipal securities dealer shall be examined in accordance with Section 15B(c)(7) of the Act to determine, at a minimum, whether such broker, dealer or municipal securities dealer and its associated persons are in compliance with all applicable rules of the Board and all applicable provisions of the Act and rules and regulations of the Commission thereunder. 

 ENDNOTES

1. Securities Exchange Act Release No. 42019 (October 15, 1999).

2. Underlining indicates new language; strikethrough denotes deletions.