2026-11211NoticeWallet

SEC Continues Broker Collateral Permission Reporting

Published Date: 6/4/2026

Notice

Summary

The SEC is asking to keep collecting info under Rule 8c-1, which stops broker-dealers from using customers’ securities as loan collateral without permission. About 54 broker-dealers will keep filing reports to protect investors and keep trading fair. This extension won’t change costs or deadlines but keeps important rules in place to prevent risky borrowing.

Analyzed Economic Effects

3 provisions identified: 1 benefits, 2 costs, 0 mixed.

Protects customers' securities from misuse

You (as an investor) are protected by Rule 8c-1, which stops broker-dealers from using customers' securities as loan collateral without consent. The rule says broker-dealers cannot commingle different customers' securities as collateral without each customer's consent, cannot commingle customers' securities with the firm's own securities under the same pledge, may only pledge customer securities to the extent customers owe the broker-dealer, and must give certain written notifications to pledgees.

Broker-dealer reporting burden continues

About 54 broker-dealers will continue filing reports under Rule 8c-1. Each broker-dealer makes an estimated 45 annual responses (about 2,430 responses total per year), each response takes about 0.5 hours, for a total estimated burden of about 1,215 hours per year; the extension request does not change costs or deadlines.

Three-year recordkeeping requirement

If you are a broker-dealer subject to Rule 8c-1, you must keep the required records for three years. This recordkeeping is mandatory to help ensure broker-dealers do not commingle customer securities or use them to finance their proprietary business.

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Key Dates

Published Date
6/4/2026

Department and Agencies

Department
Independent Agency
Agency
Securities and Exchange Commission
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