Finra
Under SEC Rule 15c3-3, broker-dealers are required to:
Rule 15c3-3 = Customer Protection Rule. Segregates customer assets from firm assets.
Complete Analysis & Legal Rationale
SEC Rule 15c3-3 (Customer Protection Rule) requires broker-dealers to maintain possession or control of customer securities and keep customer cash in a separate reserve account. This protects customer assets if the firm experiences financial difficulties.
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
Does not match the governing securities rule described in the explanation.
Matches the verified teaching point in the explanation.
Does not match the governing securities rule described in the explanation.
Does not match the governing securities rule described in the explanation.
Official Standard: Primary source referenced in the explanation (SEC Rule 15c3-3). Verify current text before launch.