SEC Extends No-Action Relief to Broker-Dealers under Rule 17a-8
The SEC extended previous no-action relief provided to broker-dealers in 2013 under Exchange Act Rule 17a-8 ("Financial Recordkeeping and Reporting of Currency and Foreign Transactions") if a broker-dealer relies on a registered investment adviser to perform some or all of its customer identification program obligations.
In February 2004, the SEC Division of Trading and Markets (the "Division"), in consultation with the Financial Crimes Enforcement Network, issued a letter stating it would not recommend enforcement action to the SEC if a broker-dealer treated a registered investment adviser as if it were subject to an anti-money laundering rule under 31 U.S.C. §5318(h) ("AML Program Rule"). Because the AML Program Rule did not become effective, the no-action position in the letter was extended multiple times, most recently in January 2013 for an additional two years.
The Division is further extending the no-action position in the 2013 letter until the earlier of: (i) the date upon which an AML Program Rule for investment advisers becomes effective, or (ii) two years from the date of the letter, until January 9, 2017.