---
kind: "section"
citation: "17 C.F.R. § 405.2"
title: "17"
number: "405.2"
heading: "Reports to be made by registered government securities brokers and dealers."
url: "https://uscodex.org/cfr/17/405.2"
---

# §405.2. Reports to be made by registered government securities brokers and dealers.

- (a) Every registered government securities broker or dealer, except a government securities interdealer broker subject to the financial responsibility requirements of [§ 402.1(e)](/cfr/17/402.1.md?p=e) of this chapter and a government securities broker or dealer that is also a futures commission merchant registered with the CFTC, shall comply with the requirements of [§ 240.17a-5](/cfr/17/240.17a-5.md) of this title (SEC [Rule 17a-5](/cfr/17/17a-5.md)), with the following modifications:
  - (1) **References to “broker or dealer” include registered government securities brokers and dealers.**
  - (2) References to “rules of the Commission” or words of similar import include, where appropriate, the regulations contained in this subchapter.
  - (3) References to Form X-17A-5 mean Form G-405 ([§ 449.5](/cfr/17/449.5.md) of this chapter).
  - (4) For the purposes of [§ 240.17a-5(a)(4)](/cfr/17/240.17a-5.md?p=a-4) of this title, the Commission may, on the terms and conditions stated in that subparagraph, declare effective a plan with respect to Form G-405, in which case, that plan shall be treated the same as a plan approved with respect to Form X-17A-5.
  - (5) References to “net capital” mean “liquid capital” as defined in [§ 402.2(d)](/cfr/17/402.2.md?p=d) of this chapter.
  - (6) References to [§ 240.15c3-1](/cfr/17/240.15c3-1.md), relating to net capital, mean [§ 402.2](/cfr/17/402.2.md) of this chapter.
  - (7) Paragraph 240.17a-5(c)(2)(ii) is modified to read as follows:

    “(ii) A footnote containing a statement of the registered government securities broker's or dealer's liquid capital, total haircuts, and ratio of liquid capital to total haircuts, determined in accordance with [§ 402.2](/cfr/17/402.2.md) of this title. Such statement shall include summary financial statements of subsidiaries consolidated pursuant to [§ 402.2c](/cfr/17/402.2c.md) of this title, where material, and the effect thereof on the liquid capital, total haircuts and ratio of liquid capital to total haircuts of the registered government securities broker or dealer.”.

  - (8) References to [§ 240.15c3-3](/cfr/17/240.15c3-3.md) and the exhibits thereto, relating to possession or control of customer securities and reserve requirements, mean [§ 403.4](/cfr/17/403.4.md) of this chapter.
  - (9) The reference to [§ 240.15b1-2](/cfr/17/240.15b1-2.md) of this title, relating to financial statements to be filed upon registration, means [§ 240.15Ca2-2](/cfr/17/240.15Ca2-2.md).
  - (10) The supplemental report described in [§ 240.17a-5(e)(4)](/cfr/17/240.17a-5.md?p=e-4) of this title, concerning the Securities Investor Protection Act, is not required.
  - (11) The statement described in [§ 240.17a-5(f)(2)](/cfr/17/240.17a-5.md?p=f-2) of this title shall be headed “Notice Pursuant to Section 405.2,” and shall be filed within 30 days following the effective date of registration as a government securities broker or dealer.
  - (12) References in [§ 240.17a-5(h)(2)](/cfr/17/240.17a-5.md?p=h-2) of this title to [§ 240.17a-11](/cfr/17/240.17a-11.md) mean [§ 405.3(a)](/cfr/17/405.3.md?p=a) of this chapter.
- (b) A government securities interdealer broker subject to the financial responsibility requirements of [§ 402.1(e)](/cfr/17/402.1.md?p=e) of this chapter shall comply with the requirements of [§ 240.17a-5](/cfr/17/240.17a-5.md) of this title (SEC [Rule 17a-5](/cfr/17/17a-5.md)), with the following modifications:
  - (1) References to “broker or dealer” include government securities interdealer brokers;
  - (2) References to “rules of the Commission” or words of similar import include, where appropriate, the regulations contained in this subchapter.
  - (3) References to “net capital” mean net capital calculated as provided in [§ 402.1(e)](/cfr/17/402.1.md?p=e) of this chapter.
  - (4) References to [§ 240.15c3-1](/cfr/17/240.15c3-1.md), relating to net capital, include the modifications contained in [§ 402.1(e)](/cfr/17/402.1.md?p=e) of this chapter.
  - (5) References to [§ 240.15c3-3](/cfr/17/240.15c3-3.md) and the exhibits thereto, relating to possession or control of customer securities and reserve requirements, mean [§ 403.4](/cfr/17/403.4.md) of this chapter.
  - (6) The reference to [§ 240.15b1-2](/cfr/17/240.15b1-2.md) of this title, relating to financial statements to be filed upon registration, means [§ 240.15Ca2-2](/cfr/17/240.15Ca2-2.md).
  - (7) The supplemental report described in [§ 240.17a-5(e)(4)](/cfr/17/240.17a-5.md?p=e-4) of this title, concerning the Securities Investor Protection Act, is not required.
  - (8) The statement described in [§ 240.17a-5(f)(2)](/cfr/17/240.17a-5.md?p=f-2) of this title shall be headed “Notice Pursuant to Section 405.2” and shall be filed within 30 days following the effective date of registration as a government securities broker.
  - (9) References in [§ 240.17a-5(h)(2)](/cfr/17/240.17a-5.md?p=h-2) of this title to [§ 240.17a-11](/cfr/17/240.17a-11.md) mean [§ 405.3(b)](/cfr/17/405.3.md?p=b) of this chapter.
- (c) A registered government securities broker or dealer that is also a futures commission merchant registered with the CFTC shall comply with the requirements of [§ 240.17a-5](/cfr/17/240.17a-5.md) of this title (SEC [Rule 17a-5](/cfr/17/17a-5.md)), with the following modifications:
  - (1) **References to “broker or dealer” include registered government securities brokers and dealers.**
  - (2) References to “rules of the Commission” or words of similar import include, where appropriate, the regulations contained in this subchapter.
  - (3) References to [§ 240.15c3-3](/cfr/17/240.15c3-3.md) and the exhibits thereto, relating to possession or control of customer securities and reserve requirements, mean [§ 403.4](/cfr/17/403.4.md) of this chapter.
  - (4) The reference to [§ 240.15b1-2](/cfr/17/240.15b1-2.md) of this title, relating to financial statements to be filed upon registration, means [§ 240.15Ca2-2](/cfr/17/240.15Ca2-2.md).
  - (5) The supplemental report described in [§ 240.17a-5(e)(4)](/cfr/17/240.17a-5.md?p=e-4) of this title, concerning the Securities Investor Protection Act, is not required.
  - (6) The statement described in [§ 240.17a-5(f)(2)](/cfr/17/240.17a-5.md?p=f-2) of this title shall be headed “Notice Pursuant to § 405.2,” and shall be filed within 30 days following the effective date of registration as a government securities broker or dealer.
  - (7) References in [§ 240.17a-5(h)(2)](/cfr/17/240.17a-5.md?p=h-2) of this title to [§ 240.17a-11](/cfr/17/240.17a-11.md) mean [§ 405.3(c)](/cfr/17/405.3.md?p=c) of this chapter.

## Notes

### Amendments

[52 FR 27954, July 24, 1987, as amended at 60 FR 11026, Mar. 1, 1995; 64 FR 1737, Jan. 12, 1999; 79 FR 38456, July 8, 2014]

### Authority

Authority: 15 U.S.C. 78o-5 (b)(1)(B), (b)(1)(C), (b)(2), (b)(4).

### Source

Source: 52 FR 27954, July 24, 1987, unless otherwise noted.

### Amendments

[52 FR 27954, July 24, 1987, as amended at 60 FR 11026, Mar. 1, 1995; 64 FR 1737, Jan. 12, 1999; 79 FR 38456, July 8, 2014]