SEC Approves Amendment to Rule G-16, on Periodic Compliance Examination
On October 15, 1999 the Securities and Exchange Commission approved an amendment to rule G-16, on periodic compliance examination.1The amendment alters rule G-16s requirement that compliance examinations be conducted once every 24 months to once every two years. The rule change is intended to facilitate coordination of on-site examinations to eliminate unnecessary regulatory duplication without negatively affecting investor protection. The amendment became effective upon approval.
October 20, 1999
TEXT OF AMENDMENT2
Rule G-16. Periodic Compliance Examination
At least once each
twenty-four monthstwo calendar years,
each broker, dealer and municipal securities dealer shall be examined in accordance with
Section 15B(c)(7) of the Act to determine, at a minimum, whether such broker, dealer or
municipal securities dealer and its associated persons are in compliance with all
applicable rules of the Board and all applicable provisions of the Act and rules and
regulations of the Commission thereunder.
1. Securities Exchange Act Release No. 42019 (October 15, 1999).
2. Underlining indicates new language; strikethrough denotes deletions.
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