[14] Rule 17a-4 sets out the period for which these records must be kept by the accompanying registered broker. The accompanying U.S. broker dealer must keep in his office a written note of the above information and consents to service of the lawsuit by the related persons of the foreign broker in his office and provide such records to the SEC upon request. (back) 2 For the purposes of these FAQs, “dealer broker” means a registered dealer who meets all the requirements set out in Rule 15a-6 (a) (3) (iii), including the conduct of transactions, the issuance of confirmations, the keeping of books and records, the participation in oral communications and the receipt of certain statements and consents. Question 10: What is the minimum net capital amount for a registered dealer who has entered into an accompanying agreement with a foreign broker in accordance with Rule 15a-6(a)(3)? Question 4: Rule 15a-6 (a) (3) (iii) (A) (2) requires a broker to accompany providing “all necessary confirmations and statements to the U.S. institutional investor or large institutional investor in the United States” with respect to transactions under these agreements. If required by foreign law, can the foreign broker send confirmations and bank statements directly to U.S. counterparties? Answer: No. An importing broker cannot invoke the exception in Rule 15c3-3(k) (2) (2) (i) and retain a net capital of $100,000, while acting as a companion for a foreign broker in accordance with Rule 15a-6(a)(3) and relies on the Nine Firms Letter. As noted in the answer to question 10, a registered dealer who has entered into an accompanying agreement with a foreign broker in accordance with rule 15a-6 (a) (3) is subject to a minimum net capital requirement of at least $250,000, unless the accompanying broker has entered into a fully disclosed contract of carriage with another registered broker who has given his consent. in writing, in order to comply with the SEC`s financial liability brokerage rules with respect to the accompanying agreement23 A dealer broker, who retains a minimum net capital of at least $250,000 and relies on the exception of Rule 15c3-3(k)(2)(i), or a broker that operates entirely in accordance with Rule 15c3-3, can work according to the Nine Firms Letter.

This net capital requirement is based on the attendant`s responsibilities in accordance with Rule 15a-6 (a) (3) (iii). Question 8.1: Does the answer to question 8 mean that a foreign broker would have to enter into an accompanying agreement with a registered broker in order to rely on the letter seven Firms? For example, the Boston Fireman`s Pension Fund wants to buy one million shares of a South African telecommunications company. The South African Broker may, if it has entered into a written agreement with a U.S. Broker (the “Chaperone Broker”), sell such units to Boston Fireman`s Pension Fund if (1) the Chaperone Broker has audited the South African Company and its staff; 2. The South African company and its staff accepted notification of the proceedings in the United States and agreed to provide recordings to the United States supervisory authorities upon request; (3) the Chaperone broker records the transaction in its books and sends a confirmation of the transaction in accordance with Rule 10b-10 (or ensures that it was sent by the foreign broker and has a record in that regard); and (4) the United States. . . .

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