14 Avr What Is a Paib Agreement
In addition, the definition of the PAB account in the final rule, as proposed, excludes accounts that operate on a delivery against payment basis or on a receipt against payment basis or on a « DVP/RVP » basis, as these accounts typically hold securities and cash on a short-term basis.  The provision on DVP/RVP accounts is essentially adopted as proposed, although the adopted point (a)(16) was amended by dividing the text into two sentences. In the adopted version, the reference to the provision relating to the DVP/RVP account has been moved to the first sentence. The Commission does not accept the proposed exclusions from the calculation requirement for the calculation of the PAB reserve with respect to accounts established by a PAB account holder that fully guarantee the obligations of the depositary dealer or whose accounts are fully guaranteed by the depositary dealer. Rather than creating a specific exception for these account holders, the Commission considers that the best approach is to allow these accounts to enter into subordination agreements with the custodian dealer so that these accounts are excluded from the definition of the PAB account. This approach simplifies the definitive regime and continues to allow these account holders to be excluded from its scope. Respondents` final estimates have been updated to reflect more recent information.  Amendment to rule 15c3-1, which requires a broker-dealer to make disclosures to securities lenders and obtain certain agreements from securities lenders, applies only to businesses that participate as agents in the settlement of securities lending transactions. The Commission estimates that approximately 122 broker-dealers will be affected by this requirement.  This estimate has been updated based on the estimate of 170 broker-dealers in the proposed press release.  No comments were received on this estimate.
200. See Amendments to the Financial Liability Rules, 72 FR, p. 12866 (« [T]he client should agree before the change (p.B. in the account opening agreement) that the broker-dealer may switch the scanning option between these two types of products. »). In the proposed publication, the Commission expressed concern that broker-dealers could receive capital contributions from investors, which are then withdrawn after a short period of time (often less than a year).  In some cases, capital may be contributed under an agreement allowing the investor to withdraw it at its discretion. In the past, the Commission has stressed that capital contributions to broker-dealers should not be temporary and the Commission services have stated that a capital contribution should be treated as a liability if it is made on the understanding that the deposit may be withdrawn at the investor`s option.  935. The commentator noted that broker-dealers « have to deal with a relatively static matrix of commissions and fees compared to what they can charge clients. » Therefore, the commentator believes that « broker-dealers will not be able to pass on any of these cost increases directly to clients, regardless of the type of client or type of business they do with small broker-dealers, further threatening the financial profit potential and return on equity of small broker-dealers. » Id..