---
kind: "section"
citation: "17 C.F.R. § 300.600"
title: "17"
number: "300.600"
heading: "Rules relating to supplemental report on SIPC membership."
url: "https://uscodex.org/cfr/17/300.600"
---

# §300.600. Rules relating to supplemental report on SIPC membership.

- (a)
  - (1) **Who must file the supplemental report.** Except as provided in [paragraph (a)(2)](#a-2) of this section, a broker or dealer must file with SIPC, within 60 days after the end of its fiscal year, a supplemental report on the status of its membership in SIPC (commonly referred to as the “Independent Accountants' Report on Applying Agreed-Upon Procedures”) if a rule of the Securities and Exchange Commission (SEC) requires the broker or dealer to file audited financial statements annually.
  - (2) If the broker or dealer is a member of SIPC, the broker or dealer is not required to file the supplemental report for any year in which it reports $500,000 or less in total revenues in its annual audited statement of income filed with the SEC.
- (b) **Requirements of the supplemental report.** The supplemental report must cover the SIPC Annual General Assessment Reconciliation Form (Form SIPC-7) or the Certification of Exclusion From Membership Form (Form SIPC-3) for each year for which an SEC Rule requires audited financial statements to be filed. The supplemental report must include the following:
  - (1) A copy of the form filed or a schedule of assessment payments showing any overpayments applied and overpayments carried forward, including payment dates, amounts, and name of SIPC collection agent to whom mailed; or
  - (2) If exclusion from membership was claimed, a statement that the broker or dealer qualified for exclusion from membership under the Securities Investor Protection Act of 1970, as amended, and the date the Form SIPC-3 was filed with SIPC; and
  - (3) **An independent public accountant's report.** The independent public accountant, who must be independent in accordance with the provisions of [17 CFR 210.2-01](/cfr/17/210.2-01.md), must be engaged to perform the following agreed-upon procedures in accordance with standards of the Public Company Accounting Oversight Board (PCAOB):
    - (i) Compare assessment payments made in accordance with the General Assessment Payment Form (Form SIPC-6) and applied to the General Assessment calculation on the Form SIPC-7 with respective cash disbursements record entries;
    - (ii) For all or any portion of a fiscal year, compare amounts reflected in the audited financial statements required by an SEC rule with amounts reported in the Form SIPC-7;
    - (iii) Compare adjustments reported in the Form SIPC-7 with supporting schedules and working papers supporting the adjustments;
    - (iv) Verify the arithmetical accuracy of the calculations reflected in the Form SIPC-7 and in the schedules and working papers supporting any adjustments; and
    - (v) Compare the amount of any overpayment applied with the Form SIPC-7 on which it was computed; or
    - (vi) If exclusion from membership is claimed, compare the income or loss reported in the audited financial statements required by an SEC rule with the Form SIPC-3.

## Notes

### Amendments

[81 FR 14374, Mar. 17, 2016]

### Authority

Authority: 15 U.S.C. 78ccc.

### Source

Source: 44 FR 5077, Jan. 25, 1979, unless otherwise noted.

### Amendments

[81 FR 14374, Mar. 17, 2016]