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Fully Paid Lending 3rd Party Collateral Administration

The Securities & Exchange Act of 1934 Rule 15c3-3 requires broker-dealers operating programs in which they borrow fully paid and excess margin securities from customers (“FPL Programs”) to comply with the specific collateral requirements to ensure the protection of customer accounts.

17a-4’s Fully Paid Stock Lending 3rd Party Collateral Administration service provides the collateral administration required for Broker Dealer FPL Programs so Clients can ensure they stay in compliance with Rule 15c3-3.

Fully Paid Stock Lending 3rd Party Collateral Administration

17a-4 LLC

Overview of our FPLCA Service

We work with Broker Dealer Clients through the following process to ensure each step enables compliance.
  • Appointment of 17a-4 as 3rd Party Collateral Administrator per the Tri-Party Collateral Administration Agreement and Control Agreement
  • Monitoring of Client Collateral
    • Monitor the Collateral held by Client for benefit of lenders
    • Maintain a ledger reflecting the Collateral attributable to each Lender
    • Maintain Lender Information and Daily Collateral Schedule
    • 17a-4 Administrator reconciles the Collateral Schedule with the Custody Account Statement
    • 17a-4 Administrator notifies Client if additional Collateral is required or if excess Collateral is available
    • 17a-4 Administrator notifies Client if additional Lender Information is missing or omitted
  • Monitoring Client’s Financial Condition
    • Client shall furnish Administrator with copies of financial statements and net capital computations
    • Initiation of any case or proceeding insolvency event

Our 3rd Party administration ensures the Collateral provided by Client complies with the requirements of Rule 15c3-3 and confirms successfully Collateral delivery of equal or greater value to that of the loaned securities.

17a-4’s Fully Paid Lending Collateral Administration service offers Clients industry-leading compliance monitoring and reporting tools that enable FPL programs to successfully comply with SEA Rule 15c3-3.


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