4160. Verification of Assets
(a) A member, when notified by FINRA, may not continue to custody or retain record ownership of assets, whether such assets are proprietary or customer assets, at a financial institution that is not a member of FINRA, which, upon FINRA staff's request, fails promptly to provide FINRA with written verification of assets maintained by the member at such financial institution.
(b) The Rule shall not apply:
(1) to proprietary assets of members that are treated as non-allowable assets under SEA Rule 15c3-1; or
(2) in instances where FINRA determines that there is no independent custody or record ownership of the assets.
• • • Supplementary Material: --------------
.01 Asset Transfers. Any member required to transfer its proprietary and/or customer assets pursuant to this Rule shall effect such transfer within a reasonable period of time.
.02 Member Obligations Under SEA Rule 15c3-3. Nothing in this Rule shall be construed as altering in any manner a member's obligations under SEA Rule 15c3-3.
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Adopted by SR-FINRA-2010-042 eff. Feb 1, 2011; amended by SR-FINRA-2010-062 eff. Feb. 1, 2011. Selected Notice: 10-61. |